CANSLIM

CANSLIM is a seven-step strategy used to pick growth stocks by combining both fundamental and technical analysis. Here’s what each letter stands for: 1. C - Current Quarterly Earnings Per Share (EPS): Compare the current quarter’s EPS with the previous quarter. A growth of 20% or more indicates the company is fundamentally strong. 2. A - Annual Earnings: Compare year-on-year earnings growth. A 20-25% increase suggests strong fundamentals. 3. N - New Product or Service: Look for companies that are continually innovating with new products, services, or events, showing they’re staying competitive. 4. S - Supply: A strong company should have good supply and demand dynamics for its goods, services, and stock. Scarcity of shares is important to avoid devaluation.5. L - Leader: The company should be a leader in its industry or sector, showing dominance or competitive advantage.6. I - Institutional Holding: Companies with higher institutional ownership are considered valuable. Tracking institutional ownership percentage is key.7. M - Market Trend: Ensure the stock is moving with the broader market trend, comparing it to relevant market indices.This strategy is designed to help investors identify companies with strong growth potential by analyzing key factors that influence stock performance.