Equity Research Idea Generation
Systematic stock screening and investment idea sourcing combining quantitative screens, thematic research, and pattern recognition.
The best investment ideas don't come from tips or headlines — they come from systematic screening that surfaces mispriced opportunities the market hasn't noticed yet, combining quantitative filters with thematic insight.
Who it's for: equity research analysts, portfolio managers, buy-side analysts, hedge fund analysts, investment committee members
Example
"Screen for mid-cap value ideas in industrials with insider buying" → Shortlist of 8 ideas with one-page summaries, valuation comparison table, thesis bullets, key risks, and prioritized next steps
New here? 3-minute setup guide → | Already set up? Copy the template below.
# Idea Generation
Systematic stock screening and investment idea sourcing. Combines quantitative screens, thematic research, and pattern recognition to surface new long and short ideas.
## Workflow
### Step 1: Define Search Criteria
Ask the user for parameters:
- **Direction**: Long ideas, short ideas, or both
- **Market cap**: Large, mid, small, micro
- **Sector**: Specific sector or cross-sector
- **Style**: Value, growth, quality, special situation, event-driven
- **Geography**: US, international, global
- **Theme**: Any specific thematic angle (AI, reshoring, aging demographics, etc.)
### Step 2: Quantitative Screens
Run screens based on the style:
**Value Screen**
- P/E below sector median
- EV/EBITDA below historical average
- Free cash flow yield >5%
- Price/book below 1.5x
- Insider buying in last 90 days
- Dividend yield above market average
**Growth Screen**
- Revenue growth >15% YoY
- Earnings growth >20% YoY
- Revenue acceleration (growth rate increasing)
- Expanding margins
- High return on invested capital (>15%)
- Strong net retention (>110% for SaaS)
**Quality Screen**
- Consistent revenue growth (5+ years)
- Stable or expanding margins
- ROE >15%
- Low debt/equity
- High free cash flow conversion
- Insider ownership >5%
**Short Screen**
- Declining revenue or decelerating growth
- Margin compression
- Rising receivables / inventory vs. sales
- Insider selling
- Valuation premium to peers without justification
- High short interest with deteriorating fundamentals
- Accounting red flags (auditor changes, restatements)
**Special Situation Screen**
- Recent IPOs / SPACs with lockup expirations
- Spin-offs in last 12 months
- Companies emerging from restructuring
- Activist involvement
- Management changes at underperforming companies
### Step 3: Thematic Sweep
For thematic ideas, research the theme and identify beneficiaries:
1. Define the thesis (e.g., "AI infrastructure spending accelerates through 2026")
2. Map the value chain — who benefits directly vs. indirectly?
3. Identify pure-play vs. diversified exposure
4. Assess which names are already "priced in" vs. under-appreciated
5. Look for second-order beneficiaries that the market hasn't connected to the theme
### Step 4: Idea Presentation
For each idea that passes the screen, present:
**[Company Name] — [Long/Short] — [One-Line Thesis]**
| Metric | Value | vs. Peers |
|--------|-------|-----------|
| Market cap | | |
| EV/EBITDA (NTM) | | |
| P/E (NTM) | | |
| Revenue growth | | |
| EBITDA margin | | |
| FCF yield | | |
**Thesis (3-5 bullets):**
- Why this is mispriced
- What the market is missing
- Catalyst to realize value
**Key Risks:**
- What would make this wrong
**Suggested Next Steps:**
- Build full model? Deep-dive diligence? Expert call?
### Step 5: Output
- Shortlist of 5-10 ideas with one-page summaries
- Screening criteria and methodology documented
- Comparison table across all ideas
- Prioritized list: which ideas to research first
## Important Notes
- Screens surface candidates, not conclusions — every screen output needs fundamental work
- The best ideas often come from intersections (e.g., quality company at value price due to temporary headwind)
- Avoid crowded trades — check ownership data, short interest, and how many analysts cover the name
- Contrarian ideas need a catalyst — being early without a catalyst is the same as being wrong
- Track idea hit rates over time — which screens and approaches produce the best ideas?
- Short ideas need higher conviction — timing is harder and risk is asymmetric
What This Does
Runs systematic stock screens across value, growth, quality, short, and special situation styles. Combines quantitative filters with thematic sweeps to surface long and short investment ideas. Presents each idea with valuation metrics, thesis bullets, risks, and suggested next steps.
Quick Start
Step 1: Create a Project Folder
Create a folder for your idea generation workspace and place the downloaded template inside as CLAUDE.md.
Step 2: Download the Template
Click Download above, then move the file into your project folder as CLAUDE.md.
Step 3: Start Working
"Screen for value ideas in healthcare with FCF yield >5%"
"Find growth stocks with revenue acceleration in SaaS"
"What short ideas look interesting in consumer discretionary?"
"Run a thematic sweep on AI infrastructure beneficiaries"
"Pitch me something contrarian in energy"
Screen Types
- Value: P/E below median, high FCF yield, insider buying
- Growth: Revenue >15% YoY, expanding margins, high ROIC
- Quality: Consistent growth, stable margins, low leverage
- Short: Declining revenue, margin compression, accounting red flags
- Special Situation: Spin-offs, restructurings, activist involvement
Best Practices
- Screens surface candidates, not conclusions — every output needs fundamental work
- The best ideas come from intersections (quality company at value price due to temporary headwind)
- Avoid crowded trades — check ownership data, short interest, and analyst coverage
- Contrarian ideas need a catalyst — being early without one is the same as being wrong
- Track idea hit rates over time to refine your screening approach