MARINE PETROLEUM TRUST (NASDAQ:MARPS) Fits Key CAN SLIM Criteria as a High-Growth Contender

The CAN SLIM investing approach, created by William O’Neil, blends fundamental and technical analysis to spot high-growth stocks with strong momentum. This method looks for firms showing rising earnings and sales growth, institutional backing, and relative strength, while also factoring in broader market trends. By filtering for these traits, investors target stocks likely to see notable gains, especially in favorable market conditions.

Marine Petroleum Trust (NASDAQ:MARPS) recently appeared in a CAN SLIM-based screen, fitting several important criteria that position it as a potential pick for growth-focused investors. Here, we review how MARPS matches the method’s key points:

C – Current Quarterly Earnings and Sales Growth

A core part of CAN SLIM is finding firms with strong recent earnings and revenue growth. MARPS posted:

• 109.7% year-over-year EPS growth in the most recent quarter, well above the 20-25% minimum suggested by O’Neil.
• 36.6% year-over-year sales growth, also topping the method’s usual 25% target.

This improvement points to solid operational results, a key detail for CAN SLIM investors looking for momentum.

A – Annual Earnings Growth

The system stresses consistent profitability. Over the last three years, MARPS has achieved:

• 64.6% EPS CAGR, significantly higher than the 25% standard.
• A 74.8% Return on Equity (ROE), showing efficient use of capital and beating 95% of its peers in the Oil, Gas & Consumable Fuels sector.

These figures emphasize the firm’s ability to grow earnings—a vital feature for growth-focused investors.

N – New Highs and Industry Leadership

Though MARPS isn’t a "new" firm, its recent price movement reflects strength. The stock holds a:

• Relative Strength (RS) rating of 85, meaning it beats 85% of the market—a sign of leadership.
• Positive short- and long-term trends, as seen in the technical analysis report, with consolidation near the top of its 52-week range.

S – Supply and Demand Dynamics

MARPS shows favorable liquidity and capital structure:

• No debt, removing solvency concerns and matching CAN SLIM’s preference for low leverage.
• A small float, which can boost upward moves if demand rises.

L – Market Leadership

With an RS rating in the top 15% of stocks, MARPS displays relative outperformance—a quality O’Neil links to potential winners.

I – Institutional Sponsorship

Institutional ownership is modest at 3.4%, which could be viewed as neutral. While CAN SLIM usually favors growing institutional interest, MARPS’ unique setup (as a royalty trust) may restrict broad institutional involvement. Still, its high ROE and growth figures could draw more attention.

M – Market Direction

The S&P 500’s positive long- and short-term trends create a supportive setting for CAN SLIM stocks, including MARPS.

Technical and Fundamental Summary

• Technical Rating: 9/10 – MARPS displays strong momentum, with a recent Pocket Pivot signal hinting at accumulation. Resistance sits near $5.36, with support at $4.71. (Full TA Report)
• Fundamental Rating: 4/10 – While profitability is outstanding (ROE: 74.8%), growth has slowed lately, and the high dividend payout ratio (90.9%) raises concerns about sustainability. (Full FA Report)

Conclusion

MARPS meets several CAN SLIM standards, especially in earnings growth, profitability, and relative strength. However, its low institutional ownership and dividend-heavy setup may need further review. For investors searching for similar high-growth options, check more results from our CAN SLIM screen here.

Disclaimer: This analysis is not investment advice. Do your own research or consult a financial advisor before making decisions.