CAN SLIM Screener Flags IRSA -SP ADR (NYSE:IRS) as a High-Growth Real Estate Contender

In growth investing, few methods have lasted as long or earned as much regard as the CAN SLIM system, created by William O’Neil. This approach joins careful fundamental study with important technical signs to find leading stocks ready for major growth. The letters mean Current quarterly earnings, Annual earnings increases, New products or highs, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. By looking for firms that show firm earnings momentum, sound financial condition, and better relative price performance, investors try to find stocks during their strongest rising periods. A recent filter using this established method has found an interesting candidate in the real estate field.

Fitting the CAN SLIM Rules

IRSA Inversiones y Representaciones SA (NYSE:IRS), an Argentina-based real estate group, seems to fit a number of central rules of the CAN SLIM idea. The method focuses on sharp, recent growth, and IRS shows this with notable numbers from its newest quarter.

• Current Quarterly Earnings & Sales (The "C"): The firm announced a year-over-year earnings per share (EPS) increase of about 1,099% and a sales increase of 278% for the last quarter. These figures are much higher than O’Neil’s stated lowest point of 18-20% and show strong, speeding business momentum, a key part of the CAN SLIM method.
• Annual Earnings Increases (The "A"): Looking past one quarter, IRS shows a convincing history with a 3-year EPS compound annual growth rate (CAGR) of 33%. This shows continued profit growth, not just a single event. Also, its Return on Equity (ROE) of 12.4% is above the method's usual mark of 10%, showing good use of shareholder money.
• Leader or Laggard (The "L"): A main rule of CAN SLIM is putting money into market leaders, not laggards. This is measured with relative strength (RS), which checks a stock's price action against the wider market. IRS has a firm RS rating of 87.35, meaning it has done better than about 87% of all stocks. This firm price action supports that the market is seeing the company's fundamental improvement.
• Supply, Demand, and Financial Condition (The "S"): The method prefers companies with a good balance sheet. IRS keeps a careful Debt-to-Equity ratio of 0.33, which is much lower than the filter's limit of 2.0. This small debt allows financial room and lowers danger, matching the need for financially steady growth choices.

Fundamental and Technical View

A check of the company's fundamental analysis report points to a varied but hopeful picture. The total fundamental rating is middle, pulled down by a less sound financial condition score. Yet, the clear feature is its unusual growth rating, pushed by the sharp EPS and sales figures mentioned before. Profit measures, especially profit and operating margins, score well inside the Real Estate Management & Development industry.

The technical analysis report shows a clearly positive view, giving IRS a high technical rating of 9 out of 10. Both its short and long-term directions are good, and the stock is trading close to its 52-week high. The firm relative strength rating is repeated here, noting the stock does better than 88% of its industry group. While the report warns that recent movement suggests watching for a better point to enter, the basic price direction is clearly positive.

Setting and Points to Think About

It is key to see these results inside the wider market setting. The present short-term direction for the S&P 500 is positive, which meets the "M" (Market Direction) rule of the CAN SLIM system. Putting money into strong single stocks is usually more successful when the total market is moving up.

Still, investors should see areas where IRS's picture shows details. Institutional ownership is very small at about 6.5%, which is much below the filter's high limit of 85%. While this meets the filter's technical need, very small institutional support can have two sides; it may mean the stock is not known, but it also shows a lack of approval from professional money managers. Also, as an Argentine ADR, the firm holds built-in geopolitical and currency dangers that are not found by number filters alone.

A Choice for More Study

For investors using a CAN SLIM-based plan, IRSA Inversiones y Representaciones SA presents a convincing case for more careful review. It shows the sharp quarterly growth, firm annual earnings path, better relative strength, and good balance sheet that the method looks for. The strong technical direction gives support. While the small institutional ownership and country-specific dangers are items to examine, the stock's match with several central growth ideas is clear.

This stock was found using a set CAN SLIM filter setup. You can inspect the present results of this filter and find other possible choices by viewing the live screener here.

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Disclaimer: This article is for information only and is not financial advice, a support, or a suggestion to buy, sell, or hold any stock. The CAN SLIM method includes large risk and is not right for all investors. You should do your own full study and think about talking with a skilled financial advisor before making any investment choices.