StockEdge.com
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
    • Compare Plans
StockEdge Blog
  • Trending Stocks
  • Insights
    • All
    • Business Houses
    • Markets themes
    • Stock Insights
    Top 5 Textile stocks

    Top 5 Textile Stocks in India: From Cotton to Cash

    multi-bagger stocks for 2025

    5 Multibagger Stocks to keep an eagle-eye for 2025

    Jindal Saw – Strong Earnings Momentum Ahead

    Jindal Saw – Strong Earnings Momentum Ahead

    Kirloskar Group- A Legacy of 134 Years

    Kirloskar Group- A Legacy of 134 Years

    renewable energy stocks in india

    Top Renewable Energy Stocks in India

    blue chip stocks

    Top 5 Blue Chip Stocks to Buy and Invest in 2023

    Budget 2023: Stocks to keep an eye on

    Budget 2023: Stocks to keep an eye on

    Adani Enterprises FPO: Detailed Analysis, GMP and Review?

    Adani Enterprises FPO: Detailed Analysis, GMP and Review?

    Top 5 Defence Stocks to Invest in India

    Top 5 Defence Stocks to Invest in India

  • Technical Analysis
    Chart Patterns – Holy grail of Stock Market Analysis

    Chart Patterns – Holy grail of Stock Market Analysis

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    Beat the street with Sector Rotation Strategy

    Beat the street with Sector Rotation Strategy

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Derivative Analytics

    An Insightful Research Tool For Derivative Analytics

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    A Powerful Technical Indicator Beta & Beta Scans

    A Powerful Technical Indicator Beta & Beta Scans

    Technical Analysis using Edge Charts

    Technical Analysis using Edge Charts

    adaptive relative strength and static relative strength scans

    What is Adaptive Relative Strength & Static Relative Strength Scans?

  • Fundamental Analysis
    • All
    • Cash Flow Ratios
    • Efficiency ratios
    • Growth Ratios
    • Liquidity Ratios
    • Return Ratios
    • Solvency ratios
    • Valuation Ratios
    high dividend paying stocks

    Identifying High Dividend Paying Stocks

    Understanding the Importance of creating Fundamental Scans

    Understanding the Importance of creating Fundamental Scans

    Using My Combination Scan to Identify best in an Industry

    Using My Combination Scan to Identify best in an Industry

    Cost Income ratio

    Cost to Income Ratio(%)

    Cost of Liability

    Cost of Liabilities (%)

    Operating Cost to Assets Ratio (%)

    Operating Cost to Assets Ratio (%)

  • StockEdge Tutorials
    StockEdge Club: An Exclusive Investors Hub & Analytics platform

    StockEdge Club: An Exclusive Investors Hub & Analytics platform

    FII/DII Data: Leading Indicators of Stock Market

    FII/DII Data: Leading Indicators of Stock Market

    Chart Patterns – Holy grail of Stock Market Analysis

    Chart Patterns – Holy grail of Stock Market Analysis

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    Powerful Investment Themes for Retail Investors

    Powerful Investment Themes for Retail Investors

    Beat the street with Sector Rotation Strategy

    Beat the street with Sector Rotation Strategy

    StockEdge Version Update 8.3

    StockEdge Version Update 8.3

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

    Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

  • Mutual Fund
    Top 5 Mutual Funds for 2022 where you can start your SIP

    Top 5 Mutual Funds for 2022 where you can start your SIP

    What are Value Funds and its Advantages?

    What are Value Funds and its Advantages?

    thematic funds

    Thematic Funds : Everything you need to know

    Understanding Sector Funds and their Benefits to our Portfolio

    Understanding Sector Funds and their Benefits to our Portfolio

    Are Dividend Yield Funds a good option to invest in?

    Are Dividend Yield Funds a good option to invest in?

    What are Contra Funds and their advantages?

    What are Contra Funds and their advantages?

    Trending Tags

    No Result
    View All Result
    • Trending Stocks
    • Insights
      • All
      • Business Houses
      • Markets themes
      • Stock Insights
      Top 5 Textile stocks

      Top 5 Textile Stocks in India: From Cotton to Cash

      multi-bagger stocks for 2025

      5 Multibagger Stocks to keep an eagle-eye for 2025

      Jindal Saw – Strong Earnings Momentum Ahead

      Jindal Saw – Strong Earnings Momentum Ahead

      Kirloskar Group- A Legacy of 134 Years

      Kirloskar Group- A Legacy of 134 Years

      renewable energy stocks in india

      Top Renewable Energy Stocks in India

      blue chip stocks

      Top 5 Blue Chip Stocks to Buy and Invest in 2023

      Budget 2023: Stocks to keep an eye on

      Budget 2023: Stocks to keep an eye on

      Adani Enterprises FPO: Detailed Analysis, GMP and Review?

      Adani Enterprises FPO: Detailed Analysis, GMP and Review?

      Top 5 Defence Stocks to Invest in India

      Top 5 Defence Stocks to Invest in India

    • Technical Analysis
      Chart Patterns – Holy grail of Stock Market Analysis

      Chart Patterns – Holy grail of Stock Market Analysis

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      Beat the street with Sector Rotation Strategy

      Beat the street with Sector Rotation Strategy

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Derivative Analytics

      An Insightful Research Tool For Derivative Analytics

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      A Powerful Technical Indicator Beta & Beta Scans

      A Powerful Technical Indicator Beta & Beta Scans

      Technical Analysis using Edge Charts

      Technical Analysis using Edge Charts

      adaptive relative strength and static relative strength scans

      What is Adaptive Relative Strength & Static Relative Strength Scans?

    • Fundamental Analysis
      • All
      • Cash Flow Ratios
      • Efficiency ratios
      • Growth Ratios
      • Liquidity Ratios
      • Return Ratios
      • Solvency ratios
      • Valuation Ratios
      high dividend paying stocks

      Identifying High Dividend Paying Stocks

      Understanding the Importance of creating Fundamental Scans

      Understanding the Importance of creating Fundamental Scans

      Using My Combination Scan to Identify best in an Industry

      Using My Combination Scan to Identify best in an Industry

      Cost Income ratio

      Cost to Income Ratio(%)

      Cost of Liability

      Cost of Liabilities (%)

      Operating Cost to Assets Ratio (%)

      Operating Cost to Assets Ratio (%)

    • StockEdge Tutorials
      StockEdge Club: An Exclusive Investors Hub & Analytics platform

      StockEdge Club: An Exclusive Investors Hub & Analytics platform

      FII/DII Data: Leading Indicators of Stock Market

      FII/DII Data: Leading Indicators of Stock Market

      Chart Patterns – Holy grail of Stock Market Analysis

      Chart Patterns – Holy grail of Stock Market Analysis

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      Powerful Investment Themes for Retail Investors

      Powerful Investment Themes for Retail Investors

      Beat the street with Sector Rotation Strategy

      Beat the street with Sector Rotation Strategy

      StockEdge Version Update 8.3

      StockEdge Version Update 8.3

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

      Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

    • Mutual Fund
      Top 5 Mutual Funds for 2022 where you can start your SIP

      Top 5 Mutual Funds for 2022 where you can start your SIP

      What are Value Funds and its Advantages?

      What are Value Funds and its Advantages?

      thematic funds

      Thematic Funds : Everything you need to know

      Understanding Sector Funds and their Benefits to our Portfolio

      Understanding Sector Funds and their Benefits to our Portfolio

      Are Dividend Yield Funds a good option to invest in?

      Are Dividend Yield Funds a good option to invest in?

      What are Contra Funds and their advantages?

      What are Contra Funds and their advantages?

      Trending Tags

      No Result
      View All Result
      StockEdge Blog
      Home Tutorials
      CANSLIM strategy with StockEdge Scans for quality Stocks

      CANSLIM strategy with StockEdge Scans for quality Stocks

      StockEdge by StockEdge
      April 10, 2020
      Reading Time: 9 mins read
      6.3k
      VIEWS
      Share on FacebookShare on TwitterShare On WhatsApp

      Table of Contents

      • In CANSLIM strategy:
        • C stands for Current earnings
        • A stands for Annual Earnings
        • N stands for New product/Management
        • S stands for Supply and Demand
        • L stands for Leader or Laggard
          • See also: Using My Combination Scan to Identify best in an Industry
        • I stands for Institutional Sponsorship
        • M stands for Market Direction
        • Frequently Asked Questions
          • Does the Canslim method work?
          • What is the CANSLIM approach to investing in the stock market?
          • What is canslim method?
          • How the CANSLIM method works

      There are many strategies one adopts to buy stocks for fundamental Investing for long term wealth creation. Among them is one known as CANSLIM strategy.

      Investors should not rely solely on the PE of a stock, instead, look at high-quality businesses with sustainable competitive advantages. CANSLIM strategy will help you in identifying such businesses.

      CANSLIM is a methodology for selecting stocks, developed by Investor William O’Neil. This strategy identifies the companies which are fundamentally strong. Each letter in the acronym stands for a key factor to look for when purchasing a share in the company.

      We can use StockEdge combination scans to filter stocks on the basis of CANSLIM criteria.

      The first step is to go to “My Combination Scan” tab under My StockEdge and name the scan. In my case, I have named it as “CANSLIM Scan”

      Next step, click on the scan name, this will lead you to a blank page with a plus sign on the top right corner. By clicking on the plus sign, you get all the scans.

      make CANSLIM strategy help of CANSLIM Scan

      In CANSLIM strategy:

      C stands for Current earnings

      We will use “Consistently Increasing Quarterly EPS” from our StockEdge fundamental scan. This scan filters companies whose earnings per share (EPS) is positive for past 5 quarters and increasing every quarter as compared to the respective previous quarter. It helps in finding companies which are consistently showing good growth and generating earning for the shareholders.

      learn 2

      A stands for Annual Earnings

      To check out whether a company has shown good growth in the past, we will use “High sales Growth ratio (Annual Report)”, “Consistently increasing Annual EPS”, and “High Return on Equity”.

      These scans filter companies whose sales have increased more than 5% on YoY basis, EPS is positive for past 5 years and return on equity is more than 15% as per the latest available annual data. It helps in finding companies that have sustainable business and capable of generating profit consistently.

      N stands for New product/Management

      This portion of CAN SLIM requires a little extra research because it cannot be easily quantified in a scan. A company introducing a new product or services in the market or the addition of a new person in Management adds value to the company.

      S stands for Supply and Demand

      We will look for heavy volume accumulation by institutional investors, especially when the stock is breaking its important resistance levels. For this, we will use “Close Crossing Last Week High”. This is a bullish indicator and indicates the stocks which are moving upward and have crossed its last week’s high.

      L stands for Leader or Laggard

      Buy leading stocks from the leading industry group because leading stocks tend to be the first stock that bounce back from market correction or price decline.

      To filter out the leader stock in the industry, we will use “Stock Outperforming Sectoral Index in both 1 Week and 3 Month”. This bullish indicator filters stocks which are continuously performing better than their sectors

      See also: Using My Combination Scan to Identify best in an Industry

      I stands for Institutional Sponsorship

      Pick stocks, which have high institutional holding with recent above-average performance. The more is the investment of an institution in stocks, more is the faith of the institution in that company.

      We will use “Increase in Institutional shareholding”. This scan filters stocks where current Quarter’s institutional shareholding has increased as compared to the previous quarter.

      M stands for Market Direction

      In the stock market, the market direction can be seen by a group of stocks or benchmarks such as Nifty50, Nifty for banks etc. Studies have shown that 85% of the stock follows the ongoing market trend.

      We will use “stock outperforming the Benchmark Index in both 1 Week and 3 Month”. This is a bullish indicator under price scan and filter stocks which are continuously performing better than the Benchmark Index.

      learn 3

      Once you have added the scans, thereafter click on ‘stocks’. This will provide you with the list of all quality stocks using the CANSLIM strategy.

      Frequently Asked Questions

      Does the Canslim method work?

      CANSLIM is a good approach of investing in a bull market. But it struggles in sideways markets & bear markets. That’s why, to make money from this system over long period, its necessary to- make big returns (50%+ per annum) in a bull market stay on the sidelines during tough market conditions.
      This system does not really work very well for those traders & investors who look to take out money every month or every year from the stock markets.

      What is the CANSLIM approach to investing in the stock market?

      It, is a system for selecting growth stocks using a combination of fundamental and technical analysis techniques. It is a bullish strategy for fast markets, with the goal being to get into high-growth stocks before the institutional funds are fully invested.
      CANSLIM stocks can’t be bought and held as much of the value is being priced in for future growth, meaning any slowing in the growth trajectory, or the market as a whole, may result in the stock being punished.

      What is canslim method?

      It is a techno-fundamental strategy that helps pick quality stocks. This strategy focuses on companies that show acceleration in earnings because of innovation and suggests buying them before the stock price witnesses a major spike. For investors who cannot hold stocks for an extended period—more than five years—techno-fundamental strategy promises potentially better returns.

      How the CANSLIM method works

      Focus on both a firm’s fundamentals and market technical helps pick quality stocks.

      C: Current quarterly earnings of a firm
      Growth of at least 25% is a good starting point. Also, look at earnings acceleration over the last three quarters.
      A: Annual earnings growth
      Look for annual earnings and sales growth of at least 25% for the past three years and a return on equity of more than 17%.

      N: New product, service or management
      the biggest winners of the past had one thing in common: New products, new services, new leadership, new pricing or a new condition in the industry.

      S: Supply and demand
      Look for heavy-volume accumulation by institutional.

      L: Leader or laggard
      Buy leading stocks from the leading industry groups.

      I: Institutional sponsorship
      for a stock to be a top performer, it must have institutional support to fuel its price movement.

      M: Market direction
      Three out of four stocks follow the market’s trend, so trade in sync with the market.

      StockEdge App Scans will help you in saving your time and Energy and give you an Investment idea within minutes. So, what are you waiting for, Subscribe to our Premium version of StockEdge App and become a smart investor.

      Join StockEdge Club to get more such Stock Insights.

      You can check out the desktop version of StockEdge.

      Tags: combination scansFinancial ratiosFundamental analysisfundamental conceptsfundamental parameterFundamental scansMy Combination ScansStockedge appStockedge featureStockEdge Scan
      ShareTweetSend
      Subscribe On Telegram Subscribe On Telegram Subscribe On Telegram
      Previous Post

      Understand Fundamental Parameter of Combination Scan

      Next Post

      StockEdge version 5.0

      StockEdge

      StockEdge

      StockEdge is a self-help Equity and Mutual Fund research tool. It empowers retail investors to identify investment opportunity with all the necessary data and analytics.

      Next Post
      StockEdge version 5.0

      StockEdge version 5.0

      Relative Strength scans

      Relative Strength scans

      Understanding Business Houses

      Understanding Business Houses

      Comments 2

      1. sagar gadamwar says:
        3 years ago

        Sir plz Send Quality Stock

        Reply
        • Ganga says:
          2 years ago

          Can please share some more details about what you are exactly looking for?

          Reply

      Leave a Reply Cancel reply

      Your email address will not be published. Required fields are marked *

      Contact Us
      • Timing (Mon-Sat): 10 am to 7 pm
      • Sales: +919830994463
      • Support: +919830994402
      • Club Support: +916289906895
      • Affiliate: +917003567131
      Recent Posts
      Top 5 Textile stocks
      Top 5 Textile Stocks in India: From Cotton to Cash
      multi-bagger stocks for 2025
      5 Multibagger Stocks to keep an eagle-eye for 2025
      Important Links
      • StockEdge.com
      • StockEdge Premium
      • - Quarterly Membership
      • - Annual Membership
      • StockEdge Analyst
      • StockEdge Club
      • Compare Plans
      An Initiative Of

      © 2023 Kredent InfoEdge Pvt Ltd.

      Facebook-f Twitter Instagram Linkedin-in Youtube Pinterest-p

      Get StockEdge App

      No Result
      View All Result
      • Home
      • Article Categories
        • Fundamental Analysis
        • Technical Analysis
        • Market Themes
        • StockEdge Tutorials
        • StockEdge Version Updates
      • Products
        • StockEdge Premium
        • StockEdge Pro
        • StockEdge Club
        • Compare Plans
      • Visit StockEdge.com

      © 2023 Kredent InfoEdge Pvt Ltd.