BEL Fuse Inc. (NASDAQ:BELFB) Screened as a CANSLIM Growth Candidate

For investors looking for a structured way to find stocks with high growth, the CANSLIM method, created by William O'Neil, provides an organized system. It joins detailed fundamental review with important technical signs to find market leaders with good momentum. The method looks for firms with notable recent and yearly profit increases, good support from large investors, and a leading position in their field, all while noting the need to buy when the general market condition is positive.

A recent filter using this method has identified BEL FUSE INC-CL B (NASDAQ:BELFB) as a possible choice. The firm, which creates and makes products that give energy, safeguard, and link electronic circuits, seems to fit many of the system's main numerical rules.

Fitting the CANSLIM Basic Rules

The "C" and "A" in CANSLIM require good recent and yearly profit growth. BEL Fuse shows strong movement here, as its latest quarterly report reveals very high growth measured against the prior year's same period. This matches O'Neil's focus on increasing quarterly results as a main screen for stocks with high possibility.

• Quarterly EPS Growth (C): +111.1%
• Quarterly Sales Growth (C): +44.8%
• 3-Year Annual EPS Growth (A): +48.6%

Also, the firm shows very good profit, an important part of the "A" rule. Its Return on Equity (ROE) of 15.24% is above the 10% least amount advised in the CANSLIM system and is better than most similar firms. Looking at financial soundness, the firm keeps a fair Debt-to-Equity ratio of 0.53, under the filter's limit of 2, meeting the "S" (Supply and Demand) rule about balance sheet health.

Leading Position and Large Investor Support

The "L" and "I" rules center on market leadership and the involvement of institutional investors. BELFB displays very high comparative strength, doing better than about 94% of all market stocks over the last year. This shows clear leadership, a common trait of CANSLIM stocks, since they are often the top performers in their groups.

Institutional ownership is at 43.9%, which is much lower than the 85% maximum used in the filter. This indicates potential for more institutional purchases, which can give continued upward movement as more big investors find the stock, a pattern the CANSLIM system looks for.

Technical and Basic Review

A check of BELFB's technical analysis shows a stock in a strong upward pattern. Both its near-term and long-term trends are seen as good, and the stock is now priced near a new 52-week high, a positive technical feature within the CANSLIM system. The "N" rule specifically points out the possibility of stocks moving to new highs from correct chart formations.

From a fundamental analysis view, the firm gets a good total score, with specific high points in profit and growth. Experts forecast continued profit and sales growth in the mid-teen percentages for the next few years. While its present value measures are not low in simple terms, they seem fair compared to its industry and growth outlook.

A Choice for More Study

Based on the numerical filters from the CANSLIM method, BEL Fuse shows an interesting outline. It displays the strong profit speed, high comparative strength, and good financial numbers the method aims to find. For investors using this approach, the stock deserves more detailed study, especially with the present good market pattern, which meets the important "M" (Market Direction) rule.

This review was prompted by a set CANSLIM filtering setup. To see other stocks that now fit these growth and momentum rules, you can check the O'Neill CANSLIM High Growth screen.

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Disclaimer: This article is for information only and is not financial advice, a suggestion, or a deal to buy or sell securities. The CANSLIM method has risk, and past results do not guarantee future outcomes. Investors should do their own complete study and think about their personal money situation and risk comfort before making any investment choices.