This is a base stock screener configuration for the CANSLIM system introduced by William O'Neill. It is intended as a starting point and the settings are discussed in more detail in the linked article. CANSLIM is a system with strong fundamental criteria related mostly to EPS growth, but also has some pure technical requirements as well as entry and exit rules.
An overview of the best stock screener filters, settings and criteria for Growth Investing
This article describes our CANSLIM base screen.
Finding High Growth Market Leaders is a popular strategy. However, spotting these specific stocks is not easy. In this video, I show you how to quickly and accurately create a basic first list of stocks to consider using the O'Neill CANSLIM Trading Idea by ChartMill. The parameters used come from the book "How to Make Money in Stocks: A Winning System in Good Times and Bad" by William O'Neil. The book was first published in 1988 and has been revised repeatedly since then. In the book, fundamental criteria are used to determine which stocks meet the requirements, technical criteria combined with a general analysis of market direction further determine when to buy the stock.
A Minimum Q2Q revenue growth of 25%
A relative strength above 75
A minimum Q2Q EPS growth of 20%
A minimum ROE of 10%
On the US markets
A minimum of 100K shares per day traded on average to ensure liquidity
Institutional ownership below 85%
A debt to equity ratio below 2
3 Year EPS growth of 25% CAGR