For investors looking for a methodical way to find leading companies with high growth, the CAN SLIM system, created by William O'Neil, is a fundamental method. It joins detailed company evaluation with important chart-based signals to find stocks with good profit trends, support from professional investors, and leading traits, preferably when the general market is rising. The method's name lists its main parts: Current quarterly earnings speed, Annual earnings increases, New offerings or price highs, Supply and demand balance, Leading position, Institutional investment, and the general Market trend.
A recent filter using these ideas has identified PAN AMERICAN SILVER CORP (NYSE:PAAS) as a stock that merits more attention from investors focused on growth. The precious metals company seems to match a number of the method's numerical checks, indicating a picture of good financial trend and better performance than the market.
Match with CAN SLIM Basics
The "C" and "A" in CAN SLIM require good, speeding profit and sales increases. Pan American Silver's latest results display strong trend on these points, a key element as speeding growth frequently comes before notable price gains.
- Current Quarterly Earnings & Sales (C): The company announced a very high 217.1% year-over-year increase in earnings per share (EPS) for the latest quarter, well above the common CAN SLIM lowest limit of 18-20%. Also, quarterly sales rose by 44.6%, showing that revenue strength is joining profit growth.
- Annual Earnings Gains (A): Over a longer period, the company's three-year EPS compound annual growth rate (CAGR) is a notable 200.4%, indicating a continued time of major profit growth. Also, its Return on Equity (ROE) of 14.0% satisfies the need for effective use of investor money.
Chart-Based Leadership and Professional Investment
The "L" and "I" checks concentrate on a stock's performance compared to others and the involvement of institutional investors. Leadership is not only about company health, the market must acknowledge and value a company's advancement through its price movement.
- Leader or Laggard (L): PAN AMERICAN SILVER CORP shows outstanding market leadership with a ChartMill Relative Strength (CRS) score of 97.5. This means the stock's price action has done better than about 97.5% of the wider market over the last year, a sign of real market leaders looked for by the CAN SLIM method.
- Institutional Investment (I): Ownership by institutions is noted at 69.9%, which is in a positive area. It shows considerable professional investor attention while allowing space for more institutional purchases, a situation that can give continued demand. The amount is also under the 85% level often used to steer clear of stocks where ownership is too concentrated.
Financial Condition and Value Setting
An inspection of the company's fundamental analysis report gives a wider view. The report gives PAAS a good total score of 6 out of 10, noting better profit measures within its field, including very good net and operating margins. Financial condition is seen as acceptable, backed by a very small debt-to-equity ratio of 0.11, which fits with the "S" (Supply and Demand) check's liking for controlled debt levels. The value view is varied, while the P/E ratio seems high in simple terms, it is less expensive than many industry competitors and is supported by the company's high profit and growth speeds.
From a chart-based view, the technical analysis report gives a top score of 10, pointing to good upward trends across all main time periods. The stock is changing hands near the top of its 52-week range, matching the "N" (New Highs) part of the method. However, the report states that the recent fast rise means the stock does not presently present a high-grade, low-risk entry point, indicating possible investors may look for a time of stability.
Summary and Points for Investors
PAN AMERICAN SILVER CORP makes a strong argument when assessed using the CAN SLIM view. It shows very fast recent profit growth, good yearly EPS growth, top-level relative strength, and sound institutional ownership, all key numerical marks for the method. Its chart-based trend is clearly positive, and it functions with a careful balance sheet.
However, investors should think about the complete setting. The "M" for Market Trend reminds us that even the best individual stocks can be affected by wider market movements. While the S&P 500's short-term trend is now positive, matching one of CAN SLIM's central ideas, field-specific uncertainties for commodities and metals are always present. Also, the technical report's warning about the stock being advanced in the short term highlights the significance of timing and careful entry points, which are important parts of O'Neil's method beyond simple filtering.
For investors wanting to examine other companies that now pass similar CAN SLIM-based filters, you can see the latest filter outcomes here.
Disclaimer: This article is for information only and is not financial guidance, a suggestion, or a proposal or request to purchase or sell any securities. The CAN SLIM method includes risk, and past results of a filter or an individual stock are not a guide for future outcomes. Investors should do their own complete study and think about their personal financial situation and risk comfort before making any investment choices.
