For investors looking for a systematic way to find high-growth market leaders, the CAN SLIM method, created by William O'Neil, provides a disciplined structure. This approach mixes strict fundamental study with important technical signs to find stocks with solid earnings momentum, institutional support, and relative price strength, preferably when market conditions are good. The aim is to catch the strong upward moves of companies showing both better business results and market approval.
A recent filter using this method has identified AngloGold Ashanti PLC (NYSE:AU) as a candidate that deserves a more detailed look from growth-focused investors.
Fitting the CAN SLIM Growth Standards
The "C" and "A" in CAN SLIM center on current and yearly earnings growth, which are vital for spotting real growth momentum. AngloGold Ashanti shows very strong recent growth that matches these central ideas.
- Current Quarterly Earnings (C): The company reported a very high year-over-year earnings per share (EPS) growth of 179.4% in its latest quarter. This is much higher than the system's usual minimum of 18-25%, showing strong, immediate business momentum.
- Annual Earnings Gains (A): Over the last three years, AU has reached a compounded annual EPS growth rate near 110.9%. This shows the recent strength is not a one-time event but part of a continued, multi-year pattern of major profit growth, a key point in telling true leaders from short-term performers.
Solid Fundamentals and Financial Condition
Beyond pure growth, CAN SLIM stresses profit and good finances to confirm stability. AngloGold's fundamental picture, as shown in its detailed fundamental analysis report, gives a firm base.
- High Profitability: The company has a Return on Equity (ROE) of 32.6%, putting it in the best group of its industry. A high ROE indicates efficient management and a firm competitive place.
- Strong Balance Sheet: With a Debt-to-Equity ratio of 0.27, AU keeps a careful capital structure. This low debt gives financial room and lowers risk, which is important for dealing with cyclical fields.
- Good Margins: The company works with high profit and operating margins that rate well above industry norms, further highlighting its operational efficiency and pricing ability.
Technical Leadership and Market Approval
The "L" and "I" standards focus on leadership and institutional support, which are checked through technical study. AU's market action indicates it is being seen as a leader.
- Price Performance (L): AU has an excellent ChartMill Relative Strength (CRS) rating of 98.7. This means the stock's price performance has done better than almost 99% of the whole market over the past year, a clear mark of leadership.
- Institutional Support (I): Institutional ownership is at 76.3%, showing major interest from professional money managers. This level is inside the system's favored range, high enough to give liquidity and confirmation, but not so full that future buying is limited.
Technical View and Market Setting
The technical view for AU is very strong, getting a top rating of 10/10 in its technical analysis report. Both its long-term and short-term trends are positive, and the stock is trading near 52-week highs, a trait often wanted in CAN SLIM breakouts. This fits the "M" for Market Direction, as the present short-term trend for the wider S&P 500 is also positive, giving a supportive setting for leading stocks.
However, the report states that the recent fast price rise has caused higher volatility, leading to a lower setup quality score. This indicates that while the stock's trend is strong, investors might choose to wait for a time of consolidation or a move back to a key support level for a better, lower-risk entry point, following the system's rule on entry timing.
Summary and Points for Investors
AngloGold Ashanti PLC makes a strong case through the view of the CAN SLIM strategy. It shows the very high quarterly and yearly earnings growth the system is made to catch, supported by top-level profitability and a good balance sheet. The stock is clearly acting as a market leader, shown by its high relative strength and large institutional ownership, all within a positively trending market.
Possible investors should balance this with the company's field, gold mining, which can be affected by commodity prices and geopolitical issues. Also, the technical study indicates waiting for a better entry setup may be wise. The mix of excellent fundamentals and leading technical strength makes AU a top candidate for more research by growth investors.
Interested in finding other stocks that match this high-growth model? You can use the same CAN SLIM filter that found AU and see the present results here.
Disclaimer: This article is for information and learning only and is not a suggestion to buy, sell, or hold any security. The CAN SLIM method involves risk, and past results do not guarantee future outcomes. Always do your own complete research and think about your personal financial position and risk tolerance before making any investment choices.
