Does anyone know of, or have, a scanner for stocks meeting CANSLIM parameters? i would greatly appreciate it!
CANSLIM Parameters from my own reseacth:
C - Current quarterly earnings: Investors should look for companies that have strong current quarterly earnings growth, ideally above 20-25% or more.
A - Annual earnings growth: Investors should also look for companies that have a history of strong annual earnings growth, with a minimum growth rate of 25% over the past three years.
N - New product or service introduction: Companies with a history of introducing new and innovative products or services are preferred. This can indicate that the company has a strong R&D pipeline and is well-positioned to capitalize on future growth opportunities. A resource for finding a company's R&D budget is financial databases, such as Bloomberg or FactSet. These databases often include detailed financial information on publicly traded companies, including their R&D expenses.
S - Supply and demand: Investors should look for companies that have a high demand for their products or services, which can be indicated by factors such as high sales growth, high profit margins, and high return on equity (ROE). Additionally, investors should pay attention to the company's supply chain and production capabilities to ensure that it can meet the demand for its products or services. A high return on equity (ROE) can vary by industry and company, but generally, an ROE of 15% or higher is considered to be strong. An ROE of 20% or higher is generally considered to be very high and can indicate that the company is effectively using its capital to generate profits. ROE is a financial ratio that measures a company's profitability by expressing its net income as a percentage of its shareholders' equity. ROE is calculated by dividing net income by shareholder equity, and it measures how efficiently a company is using its equity to generate profits. A high ROE indicates that the company is using its equity effectively to generate profits, which can be a positive indicator for investors. However, investors should also consider other factors, such as the company's debt levels and industry trends, when evaluating a company's financial performance.
L - Leader or laggard: Companies that are leaders in their industry and have a strong competitive advantage are preferred. Investors should look for companies with a strong market share, a well-known brand, and a history of beating their competitors. A company with a strong market share is typically considered a leader in its industry. A strong market share can vary by industry, but generally, a company with a market share of 20% or higher is considered a leader. Historical earnings can also be an indicator of a company's leadership position. Investors should look for companies with a track record of consistent earnings growth over time, as this can indicate that the company has a sustainable competitive advantage.
I - Institutional ownership: Companies that are widely held by institutional investors, such as pension funds and mutual funds, are preferred. This can indicate that these investors have done their own research and are confident in the company's long-term prospects. Institutional ownership can be determined by looking at a company's filings with the SEC. Institutional investors are required to file a Form 13F each quarter, which lists their holdings of publicly traded stocks. This information is publicly available and can be found on the SEC's EDGAR database or through financial websites that aggregate this data. Additionally, some companies disclose the percentage of their shares held by institutional investors in their annual proxy statements. Investors can also look at the company's trading volume to get an idea of the level of institutional ownership, as institutional investors typically account for a large percentage of daily trading volume.
M - Market direction: Finally, investors should pay attention to the overall market direction and trend. This can be determined through technical analysis and by looking at indicators such as the relative strength index (RSI), moving averages, and other technical indicators. Investors should only buy stocks in a rising market and should look to sell when the market starts to decline.
