ASA Gold and Precious Metals (NYSE:ASA) Screens as a Top CAN SLIM Candidate

The CAN SLIM investment methodology, created by William O'Neil, mixes fundamental and technical analysis to find high-growth stocks that have solid momentum possibility. This organized method assesses companies using seven main factors represented by the CAN SLIM acronym, concentrating on earnings speed-up, yearly growth patterns, new qualities, supply-demand forces, market leadership, institutional backing, and the general market direction. Investors applying this plan look for companies showing both solid fundamental traits and technical price force.

Recent Performance and Growth Measures

ASA Gold and Precious Metals (NYSE:ASA) shows very good recent quarterly performance that fits well with the "C" factor in CAN SLIM, which highlights current quarterly earnings and sales speed-up. The company's newest financial outcomes display notable growth measured against the same quarter last year:

• Quarterly EPS growth of 209.5%
• Quarterly revenue growth of 173.8%

These numbers greatly go beyond O'Neil's suggested lowest limits of 18-20% for earnings growth and 25% for sales growth. The very good growth rates point to solid operational momentum, an important element for CAN SLIM investors looking for companies with speeding-up business basics.

Yearly Earnings and Profitability

The "A" in CAN SLIM centers on yearly earnings rises, and ASA performs very well on this point with a three-year EPS growth rate of 49.7%. This greatly goes past the method's suggested 25-50% range for yearly growth. The company's Return on Equity of 54.8% is much higher than the 10% lowest limit proposed by O'Neil, pointing to efficient use of shareholder money and solid management performance. These measures indicate the company is not just having a short-term spike but has set a pattern of continued growth.

Market Leadership and Relative Performance

ASA displays very good technical traits that meet the "L" factor for market leadership. The stock's relative strength rating of 95.3 shows it has done better than 95% of all stocks in the market, placing it solidly inside the market leadership group that CAN SLIM favors. This technical force is matched by the stock trading close to its 52-week high, another trait O'Neil noted as common of leading stocks before big price gains.

Financial Health and Institutional Backing

The company keeps very good financial health with no debt, making a solid balance sheet that lowers financial risk. Institutional ownership is at 73%, within the best range under 85% that O'Neil suggested. This amount indicates meaningful institutional interest while allowing space for more institutional buying, which might give future purchasing pressure.

Technical and Fundamental Review

From a technical view, ASA shows solid momentum with both short-term and long-term trends rated as good. The stock has given notable returns over several time periods, including 123% over the last year. Fundamentally, the company displays mixed traits with some questions about long-term growth steadiness, though recent performance has been very good. Investors can examine the detailed technical analysis and fundamental analysis reports for more detailed looks into these areas.

Investment Points

While ASA meets many CAN SLIM factors very well, investors should be aware that the precious metals sector holds special risks connected to commodity price changes. The company's focused contact with gold and precious metals mining work means its performance stays linked to basic commodity prices, which can be unstable. However, the mix of explosive recent growth, solid technical momentum, and clear balance sheet presents a strong case for more study by growth-focused investors.

For investors wanting to find other companies that meet CAN SLIM factors, this screening setup gives often refreshed results built on the method talked about.

Disclaimer: This analysis is for information reasons only and does not make up investment advice, suggestion, or support of any security. Investors should do their own study and talk with a qualified financial advisor before making investment choices. Past performance does not promise future outcomes, and all investments hold risk including possible loss of principal.