Revenue Growth vs Future Returns

Decision summary

Question: Revenue Growth vs Future Returns

Revenue growth >30% produced a 27.2% median 24-month return versus 25.2% for all eligible observations. The loss greater than 20% rate was 11.3% versus 13.7% baseline.

  • Future return potential: Revenue growth >30% median 27.2% versus All eligible observations 25.2%; excess 2.0%.
  • Correction/drawdown risk: loss greater than 20% 11.3% versus baseline 13.7%; excess -2.4%. Median max drawdown -9.8%.
  • Entry timing risk: entry condition Favorable based on loss risk and forward drawdown.
  • Use: buying/holding/trimming decisions require entry condition, thesis condition, and current position. No simple Buy/Sell label is inferred from price history alone.

Baseline comparison

Group Median return 25th pct 75th pct 10th pct downside Finished positive Loss >20% Loss >30% Loss >50% Median max drawdown Sample size
Revenue growth >30% 27.2% 0.0% 59.8% -24.0% 75.0% 11.3% 7.4% 3.1% -9.8% 780
All eligible observations 25.2% -2.0% 55.1% -27.5% 73.5% 13.7% 9.0% 3.4% -10.4% 4,650
EW broad index 28.3% 13.9% 51.5% -0.9% 85.9% 3.6% 3.1% 0.0% -9.6% 4,641
Signal excess vs baseline 2.0% -2.4% -1.6% -0.3% 0.7%

Distribution by bucket

Group Median return 25th pct 75th pct 10th pct downside Finished positive Loss >20% Loss >30% Loss >50% Median max drawdown Sample size
Revenue growth >30% 26.8% -0.4% 62.0% -26.5% 74.7% 12.6% 8.4% 3.1% -12.6% 5,137
15-30% 31.2% 0.2% 67.7% -26.1% 75.0% 12.6% 8.2% 2.8% -10.6% 4,717
0-15% 24.9% -1.8% 54.8% -27.1% 73.4% 13.2% 8.9% 3.3% -9.4% 36,117
Negative 24.6% -1.7% 55.2% -25.1% 73.6% 12.9% 7.7% 2.4% -9.6% 7,569

Current ticker mapping

Ticker Current signal Historical median return Loss >20% Entry condition Suggested action
AMD Revenue growth 35.0% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
ANET Revenue growth 30.6% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
APH Revenue growth 54.4% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
BA Revenue growth 32.7% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
BBY Revenue growth 39.3% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
BMY Revenue growth 177.6% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
CMCSA Revenue growth 139.1% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
EL Revenue growth 31.8% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
FOX Revenue growth 59.6% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
GE Revenue growth 30.6% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
GPS Revenue growth 185.6% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
HOOD Revenue growth 41.5% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
HRL Revenue growth 194.7% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
INTC Revenue growth 135.5% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
KKR Revenue growth 34.8% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
LLY Revenue growth 47.4% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
MRVL Revenue growth 42.1% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
MU Revenue growth 85.5% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
NVDA Revenue growth 65.5% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
PFE Revenue growth 136.4% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
PLTR Revenue growth 67.7% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
POOL Revenue growth 179.1% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
SEDG Revenue growth 43.1% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
SNPS Revenue growth 31.9% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
TER Revenue growth 30.3% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact
WDC Revenue growth 32.0% 27.2% 11.3% Acceptable with staged entry Stage entries if thesis is Intact

Suggested actions

Situation Suggested action
No position Starter or staged entry is supported if thesis condition is Intact and valuation/liquidity filters pass.
Partial position Hold and add in stages while thesis remains Intact.
Full position Hold; new adds require portfolio room.
Overweight position Do not add solely because the base rate is favorable.
Thesis deteriorating Reduce or avoid regardless of historical base rate.

What this signal does not mean

This signal does not create a simple Buy/Sell label. It is a historical base-rate input for entry sizing, holding discipline, and thesis monitoring.

Dataset disclosure

Universe: local database stocks with adjusted monthly prices from 2001-01-31 to 2026-06-26. Historical S&P 500 snapshot membership exists, but the studies use the available local stock universe rather than fully reconstructed historical constituents. Filters: adjusted price at least $5, trailing 3-month average daily dollar volume at least $1 million, market cap at least $300 million when available. Survivorship-bias risk remains.

Methodology

Observations use monthly adjusted prices when available, 24-month forward returns, forward maximum drawdown from the observation price, and a 12-month cooldown to reduce overlapping signals. Baseline uses all eligible observations that pass the same price/data availability filters. EW broad-market index is used because SPY price history is not available in the local service.

Historical patterns do not guarantee future results.