Innovative Solutions & Support (NASDAQ:ISSC) Emerges as a Strong CAN SLIM Candidate

For investors looking for a systematic way to find high-growth market leaders, the CAN SLIM method, made popular by William O'Neil, provides a disciplined structure. It joins careful fundamental study with important technical signs to find stocks with solid earnings momentum, institutional backing, and relative price strength, preferably during a rising market. A recent filter using main CAN SLIM rules has found one such candidate: Innovative Solutions & Support (NASDAQ:ISSC).

Reviewing the Fundamental CAN SLIM Rules

The "CAN" part of the method looks at current and yearly earnings power. ISSC presents strong numbers across these measured filters:

• Current Quarterly Earnings & Sales (The "C"): The system looks for speeding growth. ISSC reported a 57.1% year-over-year rise in earnings per share for its latest quarter, clearly going past the common 20-25% lowest limit. Revenue growth for that time was a solid 44.6%, also above the method's standard.
• Annual Earnings Increases (The "A"): A record of continued growth is key. ISSC shows a 3-year earnings per share (EPS) compound annual growth rate (CAGR) of about 39.9%, much higher than the 25% goal. Also, its Return on Equity (ROE) of 20.6% shows good use of shareholder money and is above the 10% minimum, fitting the search for profitable growth.
• Supply & Demand / Financial Health (The "S"): CAN SLIM prefers companies with controlled debt. ISSC's debt-to-equity ratio of 0.41 is low and sits well below the filter's need of less than 2, pointing to a firm balance sheet.

Reviewing Leadership and Sponsorship

The "SLIM" parts review market notice and ownership patterns, which are important for confirming a stock's momentum.

• Leader or Laggard (The "L"): This is where relative strength (RS) is most important. A high RS score shows a stock is doing better than the wider market. ISSC has a very high RS score of 96.92, meaning it has done better than almost 97% of all stocks in the last year. This clear leadership trait is a main part of the CAN SLIM method.
• Institutional Sponsorship (The "I"): The method looks for rising interest from professional investors without too much ownership. With institutional ownership at 47.9%, ISSC is not close to being too full by institutions (the filter looks for under 85%), allowing space for more buying from this important group.

Technical and Fundamental Summary

A look at ISSC's separate reports gives a clear picture that backs the filter's results.

The fundamental analysis report gives ISSC a score of 6 out of 10, noting its "excellent profitability" with top industry margins and returns on capital. While there are small notes on financial health, the report agrees with strong past growth in both earnings and revenue. The price is seen as fair compared to its industry group.

The technical analysis report is even more direct, giving a top score of 10 out of 10. It agrees both long-term and short-term trends are good and notes the stock is trading near its 52-week high with much higher volume, a typical CAN SLIM technical trait. The report clearly says ISSC is doing better than 96% of the market and 95% of its aerospace & defense industry group.

Market Setting and Final Points

The last "M" in CAN SLIM means Market Direction, telling investors to match the general market trend. Right now, both the long-term and short-term trends for the S&P 500 are positive, giving a good setting for looking at growth-focused leaders like ISSC.

It is important to see that while the stock fits many CAN SLIM rules and shows clear technical momentum, the technical report also warns that the recent fast price increase may need patience, waiting for a possible quiet time before thinking about a buy point, as prices have been "stretched higher recently."

Find More Possible Leaders The CAN SLIM filter that found ISSC is made to sort for companies showing this mix of fast growth and market leadership. You can see the current results and change the rules to your own choices using the pre-set 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 CAN SLIM method involves risk, and past results do not show future outcomes. Investors should do their own complete study and think about their personal money situation and risk comfort before making any investment choices.