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DRDGOLD LTD-SPONSORED ADR (NYSE:DRD) Stands Out as a CAN SLIM Leader

By Mill Chart

Last update: Oct 8, 2025

The CAN SLIM investment strategy, created by William O'Neil, uses both fundamental and technical analysis to find high-growth market leaders. This methodical process assesses companies using seven main factors represented by the acronym CAN SLIM, concentrating on earnings speed, yearly growth patterns, new products or services, supply and demand forces, market position, institutional backing, and the general market trend. The approach looks for stocks with solid fundamental traits that also display technical health and institutional support.

DRD Stock Chart

Earnings and Sales Momentum

DRDGOLD LTD-SPON ADR (NYSE:DRD) shows outstanding quarterly results that fit well with the "C" factor in CAN SLIM, which focuses on current quarterly earnings and sales speed. The company's latest quarterly report displays notable growth versus the same quarter last year:

  • EPS growth of 203.09%
  • Revenue growth of 141.26%

These numbers are well above O'Neil's suggested minimum of 18-20% quarterly growth, pointing to solid operational momentum. The large speed-up in both earnings and sales indicates the company is seeing strong demand for its gold retreatment services, an important point for CAN SLIM investors looking for companies with improving business fundamentals.

Annual Growth and Profitability

The "A" part of CAN SLIM calls for steady yearly earnings growth, and DRDGOLD meets this with notable past performance. The company has reached:

  • 3-year EPS growth of 25.64%
  • Return on Equity of 36.17%

These measures easily exceed the strategy's minimum standards of 25% yearly growth and 10% ROE. The outstanding ROE puts DRDGOLD with the best in its industry, showing efficient use of shareholder money and good operational management. This steady profitability history gives assurance that the company's recent quarterly jump is not a one-time occurrence but part of a lasting growth path.

Financial Health and Institutional Sponsorship

DRDGOLD displays careful financial management that fits with CAN SLIM's focus on supply and demand forces and institutional ownership. Important financial measures include:

  • Debt-to-Equity ratio of 0.001
  • Institutional ownership of 15.60%

The very low debt level offers financial room and lowers risk, while the reasonable institutional ownership indicates potential for more institutional finding and purchasing pressure. According to the fundamental analysis report, DRDGOLD keeps good liquidity with a current ratio of 2.28 and shows very good solvency measures, placing it well for ongoing growth without financial limits.

Technical Health and Market Position

The technical view for DRDGOLD mirrors the strong momentum features valued by CAN SLIM investors. The technical analysis report shows:

  • Relative strength of 97.49
  • Both short-term and long-term trends are positive
  • Trading close to 52-week highs
  • 12-month performance of 175.31%

These technical signs show the stock is not only fundamentally good but also acknowledged by the market as a leader. The exceptional relative strength means DRDGOLD is doing better than 97% of all stocks, meeting the "L" factor for leadership. The steady upward trends across different timeframes suggest continued purchasing interest and momentum agreement.

Growth Path and Valuation

While past performance has been exceptional, DRDGOLD's future view stays positive with anticipated EPS growth of 11.26% per year. The company trades at sensible valuation levels:

  • P/E ratio of 13.26
  • Forward P/E of 15.19

These valuation points seem appealing compared to both industry competitors and the wider market, offering possible upside while keeping a margin of safety. The company's surface gold retreatment business model provides operational benefits in the present setting, placing it to gain from continued gold demand.

Find More CAN SLIM Opportunities

DRDGOLD stands for just one instance of the possible investment candidates found through the CAN SLIM method. Investors curious about finding other stocks matching these strict growth and momentum standards can use our pre-set CAN SLIM screener for continuous screening and idea creation.

Disclaimer: This article is for information only and does not make up investment advice, a suggestion, or a support of any security. Investors should do their own research and talk with financial advisors before making investment choices. Past performance does not show future outcomes.

DRDGOLD LTD-SPONSORED ADR

NYSE:DRD (10/7/2025, 8:20:32 PM)

Premarket: 29.95 +1.18 (+4.1%)

28.77

-1.01 (-3.39%)



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