The CAN SLIM system, popularized by William O’Neil, is a growth investing strategy that blends fundamental and technical analysis to identify stocks with strong earnings momentum, market leadership, and institutional support. The acronym stands for Current earnings, Annual earnings, New products or highs, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. By screening for stocks that perform well in each of these categories, investors aim to find companies positioned for continued outperformance. One stock that currently passes this rigorous screen is Mama’s Creations Inc (NASDAQ:MAMA), a prepared foods company that meets several of the CAN SLIM criteria.
Meeting the CAN SLim Criteria
The foundation of the CAN SLIM strategy begins with the “C” and “A”—current and annual earnings growth. Mama’s Creations shows a quarterly earnings-per-share (EPS) growth of 66.67% when comparing the most recent quarter to the same quarter last year, far exceeding the system’s minimum of 20%. This is supported by a 49.67% increase in quarterly sales, also well above the 25% threshold. On an annual basis, the company has delivered a 3-year EPS compound annual growth rate of 38.23%, comfortably within the 25-50% range O’Neil recommends. These growth figures are critical because they signal that the company is not just having a good quarter but is on a sustained growth trajectory.
The “L” for Leader is evaluated through relative strength. Mama’s Creations scores a ChartMill Relative Strength of 95.33, meaning it has outperformed over 95% of all stocks in the market. This is a hallmark of a CAN SLIM candidate: a stock that is already being recognized as a market leader. Pair this with a Debt/Equity ratio of just 0.09—far below the required ceiling of 2—and the company satisfies the “S” for Supply and Demand by maintaining a clean balance sheet with minimal leverage.
Technical and Fundamental Health
From a technical perspective, the stock earns a perfect technical rating of 10 out of 10, with both short-term and long-term trends positive. The stock has delivered a 105.5% return over the past 12 months and is trading near the top of its 52-week range. However, the setup quality is rated at 5 out of 10, suggesting the recent price movement has been volatile, and investors may want to wait for a consolidation before entering. You can review the full technical analysis report here.
Fundamentally, the company receives a score of 6 out of 10, with excellent growth and health ratings but modest profitability scores. The Return on Equity stands at 11.03%, above the CAN SLIM minimum of 10%, and institutional ownership is at 79.18%, just under the 85% ceiling that helps avoid overcrowding. While valuation multiples like the P/E ratio of 135.93 are elevated, the high expected future earnings growth of 39.17% per year helps justify the premium. A deeper look into the fundamentals is available in the fundamental analysis report.
Applying the Strategy
For investors following the CAN SLIM approach, Mama’s Creations checks many of the right boxes: strong accelerating earnings and sales, low debt, high relative strength, and reasonable institutional sponsorship. The current market environment supports this as well, with the S&P 500 trending positively in both the long and short term, satisfying the “M” for Market Direction. Additional stocks that pass this same CAN SLIM screening process can be found using the CAN SLIM stock screener, where you can explore more high-growth opportunities.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making investment decisions.
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Mama's Creations (NASDAQ:MAMA): A High-Growth CAN SLIM Leader With Strong Momentum
The CAN SLIM system, popularized by William O’Neil, is a growth investing strategy that blends fundamental and technical analysis to identify stocks with strong earnings momentum, market leadership, and institutional support. The acronym stands for Current earnings, Annual earnings, New products or highs, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. By screening for stocks that perform well in each of these categories, investors aim to find companies positioned for continued outperformance. One stock that currently passes this rigorous screen is Mama’s Creations Inc (NASDAQ:MAMA), a prepared foods company that meets several of the CAN SLIM criteria.
Meeting the CAN SLim Criteria
The foundation of the CAN SLIM strategy begins with the “C” and “A”—current and annual earnings growth. Mama’s Creations shows a quarterly earnings-per-share (EPS) growth of 66.67% when comparing the most recent quarter to the same quarter last year, far exceeding the system’s minimum of 20%. This is supported by a 49.67% increase in quarterly sales, also well above the 25% threshold. On an annual basis, the company has delivered a 3-year EPS compound annual growth rate of 38.23%, comfortably within the 25-50% range O’Neil recommends. These growth figures are critical because they signal that the company is not just having a good quarter but is on a sustained growth trajectory.
The “L” for Leader is evaluated through relative strength. Mama’s Creations scores a ChartMill Relative Strength of 95.33, meaning it has outperformed over 95% of all stocks in the market. This is a hallmark of a CAN SLIM candidate: a stock that is already being recognized as a market leader. Pair this with a Debt/Equity ratio of just 0.09—far below the required ceiling of 2—and the company satisfies the “S” for Supply and Demand by maintaining a clean balance sheet with minimal leverage.
Technical and Fundamental Health
From a technical perspective, the stock earns a perfect technical rating of 10 out of 10, with both short-term and long-term trends positive. The stock has delivered a 105.5% return over the past 12 months and is trading near the top of its 52-week range. However, the setup quality is rated at 5 out of 10, suggesting the recent price movement has been volatile, and investors may want to wait for a consolidation before entering. You can review the full technical analysis report here.
Fundamentally, the company receives a score of 6 out of 10, with excellent growth and health ratings but modest profitability scores. The Return on Equity stands at 11.03%, above the CAN SLIM minimum of 10%, and institutional ownership is at 79.18%, just under the 85% ceiling that helps avoid overcrowding. While valuation multiples like the P/E ratio of 135.93 are elevated, the high expected future earnings growth of 39.17% per year helps justify the premium. A deeper look into the fundamentals is available in the fundamental analysis report.
Applying the Strategy
For investors following the CAN SLIM approach, Mama’s Creations checks many of the right boxes: strong accelerating earnings and sales, low debt, high relative strength, and reasonable institutional sponsorship. The current market environment supports this as well, with the S&P 500 trending positively in both the long and short term, satisfying the “M” for Market Direction. Additional stocks that pass this same CAN SLIM screening process can be found using the CAN SLIM stock screener, where you can explore more high-growth opportunities.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making investment decisions.
Read full article here »