FREQUENCY ELECTRONICS INC (NASDAQ:FEIM) – A Strong Contender for CANSLIM Investors

FREQUENCY ELECTRONICS INC (NASDAQ:FEIM) was recently flagged by our CANSLIM stock screener, which identifies high-growth market leaders. FEIM stands out due to its strong earnings growth, solid profitability, and favorable technical setup—key traits sought by investors following the CANSLIM methodology. Below, we examine why this stock fits the criteria.

Why FEIM Fits the CANSLIM Criteria

• Earnings Growth (C & A Criteria): FEIM reported a staggering 15,900% year-over-year EPS growth in its latest quarter, far exceeding the CANSLIM minimum of 20%. Annual EPS growth over the past three years stands at 103.88%, well above the 25% threshold. Revenue growth also impressed at 38.07% for the quarter.
• Strong Profitability (A Criteria): The company boasts a Return on Equity (ROE) of 44.59%, indicating efficient use of shareholder capital. Its profit margin of 35.34% ranks in the top tier of its industry.
• Market Leadership (L Criteria): FEIM has a Relative Strength (CRS) score of 96.09, meaning it outperforms 96% of all stocks—a hallmark of market leadership.
• Institutional Sponsorship (I Criteria): Institutional ownership sits at 57.32%, below the 85% ceiling recommended by CANSLIM, suggesting room for further institutional accumulation.
• Healthy Financials (S Criteria): The company carries no debt, a rare and positive trait that enhances financial stability.

Technical Strength

FEIM’s technical rating is a perfect 10/10, with a strong long-term uptrend and recent consolidation near highs. The stock is trading above key moving averages, and its setup quality score of 7/10 suggests a favorable entry point. Resistance is minimal above current levels, while support lies near $19.10, providing a clear risk level.

For a deeper look, review the full technical analysis report and fundamental analysis report.

Our CANSLIM High Growth screener lists more high-potential stocks and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on current data, but always conduct your own research before making investment decisions.