CAN SLIM is a stock selection system developed by William O'Neill, founder of Investor's Business Daily. The acronym represents seven key criteria that identify stocks with the highest probability of significant price appreciation.
O'Neill studied the greatest stock market winners over several decades and identified common characteristics that appeared before their major price moves. CAN SLIM encapsulates these characteristics into a systematic screening process.
Look for companies with recent quarterly earnings growth of at least 25% or higher. The most explosive stock moves occur when earnings accelerate.
Examine the past 3 years of annual earnings growth. Companies showing consistent growth of 25% or more annually are strong candidates.
Stocks tend to move most when companies introduce new products, services, or business models that drive earnings growth.
Check the stock's price strength relative to the S&P 500. Stocks in strong uptrends relative to the market tend to continue outperforming.
Identify market leaders—stocks in the top 30% of their industry groups. Leaders tend to outperform laggards.
Look for increasing institutional ownership. Mutual funds and pension funds buying shares can drive sustained price appreciation.
The overall market trend matters. Stocks perform best when the S&P 500 is in an uptrend, not a downtrend.
William O'Neill's research showed that stocks meeting all 7 CAN SLIM criteria had a significantly higher probability of producing 100%+ gains compared to the broader market. During bull markets, CAN SLIM stocks have historically outperformed by 3-5x the S&P 500.
The system is designed to identify stocks in early stages of major uptrends, before they become widely recognized. This timing advantage is crucial for capturing the largest gains.
Type the ticker symbol of any US stock you want to analyze.
The scanner evaluates each of the 7 criteria and shows a score (0-100) for each.
A higher overall score indicates a stock that better matches the CAN SLIM criteria.
Look for bullish patterns like cup-with-handle or double-bottom formations.
Use the suggested buy point and stop loss level for position sizing and risk management.
CAN SLIM focuses on growth stocks, not value stocks. Look for accelerating earnings, not cheap valuations.
The best CAN SLIM stocks are identified early in their uptrends, before they become widely recognized.
Even great CAN SLIM stocks struggle in bear markets. Always consider the overall market trend.
Use stop losses to limit downside risk. O'Neill recommends cutting losses at 7-8% below entry.