When screening for stocks that combine strong fundamental growth with strong technical momentum, the CAN SLIM methodology, made famous by investor William O’Neil in How to Make Money in Stocks, remains one of the most disciplined frameworks for identifying potential market leaders. The acronym stands for Current earnings, Annual earnings, New products or highs, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. The strategy screens for companies delivering accelerating quarterly earnings and sales, solid annual growth, strong relative price strength, and healthy institutional interest—all while keeping an eye on market trends.
The screen we ran recently turned up a stock that fits these criteria surprisingly well: JULONG HOLDING LTD (NASDAQ:JLHL). Below we break down the CAN SLIM factors and explain why this company is an interesting candidate for growth investors.
Recent Performance and Market Conditions
Before examining the details, it is worth noting that the broader market environment is supportive. The S&P 500 is trending positively in both the long term and short term. This aligns with the "M" in CAN SLIM—Market Direction—which advises investors to favor buying opportunities when the general market is in a confirmed uptrend. With that backdrop, let's examine how JLHL stands on the individual criteria.
C & A: Current and Annual Earnings & Sales Growth
CAN SLIM emphasizes strong, accelerating quarterly earnings and sales, along with consistent annual growth. JLHL delivers on both fronts with strong numbers.
- Quarterly EPS Growth (Q2Q): The most recent quarter showed EPS growth of 59.71% compared to the same quarter last year. This far exceeds the CAN SLIM minimum of 20% to 25%.
- Quarterly Revenue Growth (Q2Q): Sales grew by 45.12% over the same period, again well above the 25% threshold used in the screen.
- Annual EPS Growth (3-Year): Over the past three years, EPS has compounded at a remarkable 84.01% annual rate, crushing the 25% minimum requirement.
- Return on Equity (ROE): At 54.03%, JLHL’s ROE is extremely high, indicating the company is efficiently generating profits from shareholder equity. This is a key profitability metric in the "A" component.
These figures suggest that JLHL is not just a one-quarter wonder; it has been growing earnings and revenue at an exceptional pace, which is the core foundation of the CAN SLIM approach.
L & N: Leader or Laggard, New Products or Highs
The "L" in CAN SLIM demands that investors buy leaders, not laggards. The stock’s relative strength is a quantitative measure of this.
- Relative Strength (CRS): JLHL scores a 99.51 out of 100. This means it has outperformed 99.5% of all other stocks in the market over the past 12 months. This is the hallmark of a true market leader.
- New Products/Developments: While the CAN SLIM "N" factor often requires qualitative judgment, JLHL’s business—providing intelligent integrated solutions for security, fire protection, and city management in China—operates in a sector driven by technological upgrades and urbanization, which fits the "newer" theme.
By requiring a stock to be a proven leader in its performance, the system avoids the trap of buying value traps or laggards that may never catch up.
S, I, & M: Supply, Demand, and Institutional Sponsorship
Supply and demand are reflected in the float, volume, and share count. JLHL has a low institutional ownership level of 0.11%, which is well below the 85% ceiling used in the screen. While this might seem low, it can be an advantage: it leaves room for new institutional buyers to enter, creating future demand. The Debt/Equity ratio is a very healthy 0.14, keeping the capital structure sound and reducing financial risk.
On the technical side, the ChartMill Technical Analysis Report gives JLHL a solid 8 out of 10. The long-term trend remains positive, and the setup quality score of 7 suggests the stock is consolidating after its strong run, potentially forming a base from which a new breakout could occur.
View the Full Technical Analysis Report
Valuation and Fundamental Summary
The biggest concern with JLHL is valuation. The Fundamental Analysis Report gives JLHL a total rating of 5 out of 10, with the valuation component scoring just 1 out of 10.
- Price-to-Earnings (P/E) Ratio: At 97.96, the stock trades at a significant premium to both the industry average (50.06) and the S&P 500 average (26.87).
- Profitability: On the bright side, the company is highly profitable with a Profit Margin of 10.65% and an Operating Margin of 12.56%.
- Financial Health: The score is a moderate 5 out of 10. While the Altman Z-Score of 10.39 indicates very low bankruptcy risk, the debt-to-free-cash-flow ratio of 38.46 is on the high side.
In essence, CAN SLIM investors often accept a higher valuation if the growth rate justifies it. Here, the growth is undeniable, but the price demands careful risk management.
View the Full Fundamental Analysis Report
Analyst Views and Setup
While analyst estimates are currently unavailable for JLHL (the company only IPO’d in June 2025), the technical setup is noteworthy. The stock is currently trading around $29.07, sitting in the middle of its 52-week range ($2.70 to $57.95). The ChartMill Setup Quality score suggests a decent entry point exists, with support found around $22.33. However, the average daily range is wide, so any trade setup should include a well-defined stop loss.
More results from this CAN SLIM screen can be found here for further screening.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading stocks involves risk. Always conduct your own independent research and consider your risk tolerance before making any investment decisions.
Read full article here »
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JLHL (JULONG HOLDING LTD) Shows Strong CAN SLIM Fundamentals and Momentum
When screening for stocks that combine strong fundamental growth with strong technical momentum, the CAN SLIM methodology, made famous by investor William O’Neil in How to Make Money in Stocks, remains one of the most disciplined frameworks for identifying potential market leaders. The acronym stands for Current earnings, Annual earnings, New products or highs, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. The strategy screens for companies delivering accelerating quarterly earnings and sales, solid annual growth, strong relative price strength, and healthy institutional interest—all while keeping an eye on market trends.
The screen we ran recently turned up a stock that fits these criteria surprisingly well: JULONG HOLDING LTD (NASDAQ:JLHL). Below we break down the CAN SLIM factors and explain why this company is an interesting candidate for growth investors.
Recent Performance and Market Conditions
Before examining the details, it is worth noting that the broader market environment is supportive. The S&P 500 is trending positively in both the long term and short term. This aligns with the "M" in CAN SLIM—Market Direction—which advises investors to favor buying opportunities when the general market is in a confirmed uptrend. With that backdrop, let's examine how JLHL stands on the individual criteria.
C & A: Current and Annual Earnings & Sales Growth
CAN SLIM emphasizes strong, accelerating quarterly earnings and sales, along with consistent annual growth. JLHL delivers on both fronts with strong numbers.
These figures suggest that JLHL is not just a one-quarter wonder; it has been growing earnings and revenue at an exceptional pace, which is the core foundation of the CAN SLIM approach.
L & N: Leader or Laggard, New Products or Highs
The "L" in CAN SLIM demands that investors buy leaders, not laggards. The stock’s relative strength is a quantitative measure of this.
By requiring a stock to be a proven leader in its performance, the system avoids the trap of buying value traps or laggards that may never catch up.
S, I, & M: Supply, Demand, and Institutional Sponsorship
Supply and demand are reflected in the float, volume, and share count. JLHL has a low institutional ownership level of 0.11%, which is well below the 85% ceiling used in the screen. While this might seem low, it can be an advantage: it leaves room for new institutional buyers to enter, creating future demand. The Debt/Equity ratio is a very healthy 0.14, keeping the capital structure sound and reducing financial risk.
On the technical side, the ChartMill Technical Analysis Report gives JLHL a solid 8 out of 10. The long-term trend remains positive, and the setup quality score of 7 suggests the stock is consolidating after its strong run, potentially forming a base from which a new breakout could occur.
View the Full Technical Analysis Report
Valuation and Fundamental Summary
The biggest concern with JLHL is valuation. The Fundamental Analysis Report gives JLHL a total rating of 5 out of 10, with the valuation component scoring just 1 out of 10.
In essence, CAN SLIM investors often accept a higher valuation if the growth rate justifies it. Here, the growth is undeniable, but the price demands careful risk management.
View the Full Fundamental Analysis Report
Analyst Views and Setup
While analyst estimates are currently unavailable for JLHL (the company only IPO’d in June 2025), the technical setup is noteworthy. The stock is currently trading around $29.07, sitting in the middle of its 52-week range ($2.70 to $57.95). The ChartMill Setup Quality score suggests a decent entry point exists, with support found around $22.33. However, the average daily range is wide, so any trade setup should include a well-defined stop loss.
More results from this CAN SLIM screen can be found here for further screening.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading stocks involves risk. Always conduct your own independent research and consider your risk tolerance before making any investment decisions.
Read full article here »