YPF S.A. (NYSE:YPF) Fits the CAN SLIM Strategy with Strong Earnings Growth and Market Leadership

The CAN SLIM investing strategy, created by William O’Neil, blends fundamental and technical analysis to spot high-growth stocks with strong momentum. The approach looks for companies showing faster earnings and sales growth, leading positions in their sectors, and support from institutional investors, all while highlighting the role of market trends. By filtering for these factors, investors target stocks likely to see notable price gains.

One stock now fitting multiple CAN SLIM requirements is YPF S.A.-SPONSORED ADR (NYSE:YPF), an Argentine energy firm involved in oil and gas exploration, production, and distribution. Next, we review how YPF matches key parts of the strategy.

How YPF Matches the CAN SLIM Criteria

• Current Earnings & Sales Growth (C)
  The CAN SLIM method favors firms with solid quarterly earnings and revenue growth. YPF’s latest quarter reports a 62.4% year-over-year EPS rise and a 160.3% jump in sales, both exceeding the suggested minimums of 20% and 25% by O’Neil. This growth points to better operational results.

• Annual Earnings Growth (A)
  A core part of CAN SLIM is consistent profitability. YPF’s three-year EPS growth rate of 1,908% (though starting from a small base) and a Return on Equity (ROE) of 17.3% show strong earnings growth, beating the strategy’s 25%+ yearly growth and double-digit ROE targets.

• Relative Strength & Market Leadership (L)
  Stocks with high relative strength often beat the market. YPF’s relative strength score of 90.6 puts it in the top 10% of stocks, a sign of market leadership—a key CAN SLIM factor.

• Institutional Sponsorship (I)
  While institutional ownership is modest at 5.6%, the stock’s strong price movement hints at rising interest from bigger investors. CAN SLIM prefers stocks with growing institutional buying, and YPF’s recent gains could draw more attention.

• Debt & Liquidity (S)
  The strategy leans toward firms with controlled debt levels. YPF’s debt-to-equity ratio of 0.64 is under the screener’s limit of 2, suggesting a stable financial structure.

Technical & Fundamental Summary

From a technical view, YPF scores 8/10 in ChartMill’s evaluation, showing strong price movement and better performance than the market and its peers. The stock is near the top of its recent range, though some pullback may follow its recent rise.

Fundamentally, YPF has a 3/10 rating, with positives in growth but concerns about liquidity and valuation. While profits have grown, its current ratio of 0.78 indicates possible short-term financial pressure.

For more on YPF’s technicals, check the full technical analysis report, and for fundamental details, see the in-depth fundamental analysis.

Final Thoughts

YPF displays several features that fit the CAN SLIM approach, especially in earnings growth, relative strength, and debt control. However, investors should consider its weaker liquidity and higher volatility before deciding to buy.

For more stocks meeting CAN SLIM standards, try the pre-set screener here.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.