GENERAL ELECTRIC (NYSE:GE) Emerges as a CAN SLIM Investment Candidate

In the world of growth investing, few methods have lasted as long or shown as much effect as the CAN SLIM system, created by William O’Neil. This plan joins strict fundamental study with important technical signs to find market-leading stocks ready for major price gains. The acronym details the rules: strong Current quarterly earnings, solid Annual earnings growth, a New product or market high, good Supply and demand factors, Leadership position compared to others, Institutional backing, and agreement with the general Market direction. Investors who use this method look for firms showing strong momentum in both their business results and their stock price movement.

A recent filter using these CAN SLIM ideas has identified GENERAL ELECTRIC (NYSE:GE) as a candidate for more study. The firm, now working as a dedicated aerospace company after its corporate change, seems to fit many of the system's main number-based measures.

Fitting the CAN SLIM Fundamentals

The "C" and "A" in CAN SLIM require outstanding and speeding earnings and sales growth. GE's latest financial results show it is achieving this. The company's most recent quarterly earnings per share rose by about 44.3% against the same quarter last year, well above the usual CAN SLIM lowest limit of 18-20%. This speed increase is a key sign of business momentum. Also, quarterly sales growth of more than 26% goes beyond the common filter need, pointing to strong top-line demand.

From a yearly growth view, the "A" rule looks for steady, strong earnings increase. GE's three-year EPS compound annual growth rate (CAGR) is about 28.2%, which passes the 25% mark often used in filters. This shows the company's profit gain is not a single-quarter event but part of a continuing pattern. Backing this profit is a very strong Return on Equity (ROE) of 42.9%, which points to highly effective use of shareholder money and is a good sign for the "A" and "L" (Leader) rules.

Leadership and Backing

The "L" and "I" rules center on a stock's relative strength and the existence of institutional investors. GE shows clear leadership in its price action, with a ChartMill Relative Strength (CRS) score of 90.46. This means the stock has done better than over 90% of the market in the last year, a clear mark of market leadership that fits well with the CAN SLIM idea of buying the strongest stocks in an advancing market.

Institutional backing is also there but not extreme, which CAN SLIM supporters like as it allows for more buying. GE's institutional ownership is near 80.6%, which is under the 85% top limit often used in filters. This indicates that while professional money is invested, the stock may not be completely held by institutions, possibly allowing for further gathering.

Financial Condition and Technical State

The "S" rule about supply and demand also includes financial condition. GE's Debt-to-Equity ratio is about 1.0, which is inside the acceptable band for a capital-heavy industrial company and meets a common filter rule of being under 2. This shows a controllable debt amount relative to its equity base.

From a technical study view, GE's report mentions a strong long-term upward trend, matching its high relative strength. However, the short-term trend has lately turned down, and the stock is trading nearer the bottom of its one-month band. This gives a detailed picture: while the long-term leadership is unchanged, the present pause phase means picking an entry would need close study of support levels and possible breakout spots, following the "N" (New Highs) rule of buying from a correct base.

The fundamental analysis summary agrees with this mixed but somewhat positive view, giving an overall score of 5 out of 10. It notes GE's very good profit and margin picture, along with expected future growth, but also mentions some worries about liquidity and price levels that seem high on a normal P/E basis.

A Candidate for More Study

It is key to place GE within the present market setting, the last "M" in CAN SLIM. With the S&P 500 showing positive long-term and short-term trends, the general market direction is good for following growth-focused plans like CAN SLIM.

Based on the given filter measures, GENERAL ELECTRIC makes a strong case for CAN SLIM investors to do more detailed research. The company fits many of the plan's strict filters:

• Current Earnings & Sales Growth: Outstanding Q2Q EPS (44.3%) and Sales (26.4%) growth.
• Annual Earnings Growth: Strong 3-year EPS CAGR of 28.2%.
• Profitability & Efficiency: Excellent ROE of 42.9%.
• Market Leadership: High Relative Strength (CRS 90.46), doing better than 90% of the market.
• Financial Structure: Debt/Equity ratio of 1.0 inside an acceptable band.
• Institutional Backing: Ownership at 80.6%, under a full level.

While its price and short-term technical pause call for care, its main growth measures, market-leading action, and fit with an advancing market setting make it a stock that matches the CAN SLIM form.

Interested in finding other stocks that pass similar growth and momentum filters? You can run the filter yourself and see the results via this CANSLIM stock screener.

---

Disclaimer: This article is for information only and is not investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and filter methods described, which have built-in limits. Investors should do their own complete research, think about their personal money situation, and talk with a qualified financial advisor before making any investment choices. Past results do not show future outcomes.