United States Lime & Minerals (NASDAQ:USLM) Fits CAN SLIM Criteria with Strong Growth and Market Leadership

The CAN SLIM investment strategy, created by William O'Neil, blends fundamental and technical analysis to spot high-growth stocks with solid momentum. This method looks for firms showing faster earnings, strong yearly growth, new products or services, and backing from institutions, all while keeping an eye on wider market trends. United States Lime & Minerals (NASDAQ:USLM) recently appeared in a CAN SLIM-based screen, matching several important factors that make it worth reviewing for investors focused on growth.

How USLM Matches the CAN SLIM Criteria

C – Current Quarterly Earnings & Sales Growth

The system prioritizes firms with faster quarterly earnings and revenue growth. USLM shows:

• 52.28% year-over-year EPS growth (well above the 20-30% minimum target).
• 27.29% year-over-year revenue growth (above the 25% benchmark).

This solid performance indicates the company is benefiting from demand in construction, industrial, and environmental areas. The faster growth fits CAN SLIM’s focus on firms building momentum.

A – Annual Earnings Growth

CAN SLIM seeks companies with steady yearly earnings growth. USLM’s fundamentals highlight:

• 3-year EPS CAGR of 42.54%, much higher than the 25% minimum.
• Return on Equity (ROE) of 22.64%, showing efficient use of capital.

These numbers place USLM ahead of many peers in its industry, with profitability that stands out.

N – New Products, Management, or Highs

While subjective, USLM’s role in providing materials for infrastructure and environmental uses fits long-term trends like sustainable construction. On the technical side, the stock displays:

• A long-term upward trend, trading close to its 52-week high.
• A relative strength (RS) score of 80.57, meaning it beats over 80% of the market—a key trait of CAN SLIM leaders.

S – Supply & Demand

The stock’s limited float and no debt (Debt/Equity = 0) lower supply risks. Though recent volume has dropped, its liquidity remains sufficient for institutional buyers.

L – Market Leadership

USLM’s RS score and 83rd percentile rank in the Construction Materials industry highlight its leading position.

I – Institutional Sponsorship

With 29.5% institutional ownership, USLM has moderate backing. While not extremely high, this leaves space for more institutional buying.

M – Market Direction

The S&P 500’s upward trend aligns with CAN SLIM’s idea of investing when the broader market is strong.

Technical and Fundamental Overview

• Technical Rating (10/10): Strong upward trends across all timeframes, though recent swings suggest waiting for stability. (Full TA Report)
• Fundamental Rating (8/10): Outstanding profitability (35.73% net margin) and financial health (no debt, high liquidity). Growth is strong but may slow slightly. (Full FA Report)

Key Points

• Valuation: With a P/E of 25.74, USLM is valued similarly to its industry but higher than its historical average.
• Setup Quality: While technically sound, the current chart lacks a clear pattern, suggesting waiting for a better entry point.

Find More CAN SLIM Picks

For investors looking for other high-growth options, our predefined CAN SLIM screener provides an updated list of qualifying stocks.

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