For investors looking for a methodical way to find leading companies with high growth, the CAN SLIM method, created by William O'Neil, is a fundamental strategy. It joins detailed company evaluation with important price and volume indicators to find stocks with solid profit momentum, support from large investment firms, and leading traits, all while considering a positive market environment. The system's name lists its main parts: Current quarterly earnings growth, Annual earnings increases, New offerings or price highs, Share availability and demand, Leading position in its industry, Investment firm support, and the general Market trend. A recent filter using these ideas has identified Kinross Gold Corp (NYSE:KGC) as a stock that merits more detailed review.
Reviewing the Basic "CAN" Elements
The essential "C-A-N" of CAN SLIM centers on a company's profit strength and capacity for new developments. Kinross Gold seems to satisfy a number of these measurable standards clearly, which is important for the strategy as it looks for firms displaying strong and increasing earnings growth.
- Current Earnings & Sales (C): The company displays very strong recent performance. Its earnings per share jumped 235% in the latest quarter versus the year-ago period, well above the common CAN SLIM minimum of 18-25%. Revenue increase was also solid at almost 43%, pointing to good top-line growth that supports profit gains.
- Annual Earnings Gains (A): Over a longer period, Kinross shows significant earnings growth. The three-year EPS compound annual growth rate (CAGR) is a notable 100.36%, indicating a strong upward path in earnings. Also, its Return on Equity (ROE) of 20.25% shows very effective use of investor capital, a sign of basic financial health.
- New Highs & Financial Condition (N & S): While the "new product" element is subjective, the company's financial position aligns with the "Supply" element. Kinross holds a good balance sheet with a Debt-to-Equity ratio of 0.16, much lower than the filter's highest allowed of 2. This modest debt level lowers financial risk and is seen as positive within the CAN SLIM approach.
Examining Market Position and Support ("S-L-I")
The second half of the strategy looks at market acceptance and the activity of major buyers, which are needed to maintain a stock's advance.
- Leader or Laggard (L): This is an area where Kinross Gold is particularly notable from a chart standpoint. The stock holds a very high ChartMill Relative Strength (CRS) score of 97.52. This indicates it has performed better than about 98% of all stocks over the last year, a clear mark of market leadership. For CAN SLIM users, high relative strength is essential, as it distinguishes actual leaders from the general market.
- Institutional Support (I): Ownership by large firms is at 68.2%, which is under the filter's 85% maximum. This is viewed as a good point within the strategy, implying there is still capacity for more institutional investors to find and purchase the stock, possibly offering additional demand later. It prevents the situation where a stock is already mostly held by institutions, capping new purchasing interest.
Price and Fundamental Background
A complete look at the stock includes both specific price behavior and general financial condition. Kinross Gold's technical analysis report gives a high score of 9 out of 10, mentioning its exceptional performance over the past year and leading role in the metals and mining industry. The longer-term price trend is upward, matching the CAN SLIM rule to invest in line with the market's main trend. The report also sees a period of sideways movement with clear price floors, which can assist careful investors in finding possible times to buy with controlled risk.
From a basic financial view, the detailed analysis gives Kinross a good rating, noting excellent health and profit measures within its field. The stock price is seen as appealing compared to similar companies. However, the report also notes a significant difference from a strict growth investor's view: while past growth has been good, forward projections suggest a decrease in both earnings and revenue. This is a key detail for CAN SLIM followers to consider, as the strategy places heavy focus on future earnings growth.
A Stock for More Detailed Review
Kinross Gold Corp makes a strong argument for investors using the CAN SLIM filter. It performs very well on several key measurable elements: very high quarterly EPS growth, good annual EPS growth, excellent profitability (ROE), low debt, outstanding market-leading relative strength, and a reasonable level of institutional ownership. These points make it a valid candidate that has cleared a strict multi-part screen.
However, the investment case has its qualifications. The expected reduction in future earnings growth differs from the strategy's preferred pattern of increasing momentum. This highlights the CAN SLIM idea that a screen is an initial step for more investigation, not an automatic instruction to buy. Investors need to balance the good past and current measures with the weaker future expectations, thinking about items like gold price movements and company-specific plans.
For investors wanting to see other stocks that currently meet comparable CAN SLIM-based filters, you can see the most recent screen outcomes here.
Disclaimer: This article is for information only and is not financial guidance, an endorsement, or an offer or request to purchase or sell any investments. The CAN SLIM method and any stock review include risk, and previous results do not guarantee future outcomes. Investors should perform their own complete research and think about their personal financial situation and risk capacity before making any investment choices.
