Business, Legal & Accounting Glossary
An acronym employed by momentum investors who use the seven letters as a mnemonic to identify investment strength.
C: Current Earnings – EPS should exceed 25% growth. A: Annual Earnings – Annual ROE should exceed 17%, and the company’s earnings should have grown at least 25% over the past three years. N: New Product or Service – Is a new product the catalyst for a higher trading range, and higher P/E expectations?
S: Supply and Demand – Watch if the daily trading volume exceeds the average daily volume. L: Leader or Laggard – Buy the leader of a sector, based on Relative Price Strength Rating.
I: Institutional Sponsorship – Are large buyers, such as mutual or hedge funds, invested in the stock? M: Market Indexes – The theory that three out of four stocks follow the basic market pattern for the DOW, NASDAQ or S&P 500 indexes, and to invest in uptrends rather than down to follow market sentiment.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for CAN SLIM are sourced/syndicated and enhanced from:
This glossary post was last updated: 14th November, 2021 | 0 Views.