O'Neil's 7-factor stock selection system: Current earnings, Annual earnings, New product or management, Supply and demand, Leader, Institutional sponsorship, Market direction.
Deeper Explanation
CANSLIM combines fundamental momentum (C and A: current and annual earnings acceleration), story momentum (N: new products, management, or conditions), technical momentum (S: price and volume action), and market context (M: broad market trend). C: Current quarterly EPS up 25%+. A: Annual EPS growth 25%+ over 3 years. N: Something new driving the story. S: Shares in demand with rising volume. L: Market leader (top RS in its industry). I: Institutional sponsorship growing. M: Market in confirmed uptrend. All seven factors together produce the conditions O'Neil found in virtually every major stock market winner before its biggest advance.
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