The CAN SLIM system, developed by William O’Neil, is a growth investing methodology that combines fundamental and technical analysis to identify high-potential stocks before they make major price advances. The acronym stands for Current earnings, Annual earnings, New products or management, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. By screening for accelerating quarterly earnings and sales, strong annual growth, low debt, high relative strength, and reasonable institutional ownership, the system aims to pinpoint market leaders in the early stages of a major uptrend. With the current S&P500 long-term and short-term trends both positive, the environment is favorable for applying this strategy.
After scanning the market with a CAN SLIM-based screener, Paysign Inc (NASDAQ:PAYS) emerged as a stock that checks nearly all of the key boxes. The company provides prepaid card programs and digital payout solutions for corporate, consumer, and government clients — a niche that serves growing areas like donor compensation, copay assistance, and employee rewards.
How PAYS Measures Up Against CAN SLIM Fundamentals
The C in CAN SLIM demands strong current quarterly earnings and sales growth. PAYS delivers a year-over-year EPS growth of 80% on the most recent quarter, far surpassing the system’s minimum threshold of 20%. Revenue growth over the same period came in at 50.76%, again well above the 25% hurdle. These numbers signal that the company’s business is accelerating, not just coasting.
The A criteria focuses on consistent annual earnings increases. PAYS has compounded its EPS at an average rate of 86.63% over the last three years, and its Return on Equity stands at 18.91% — comfortably above the 10% minimum. For a CAN SLIM investor, this combination proves the company is not only growing but doing so profitably.
Under the S category, low debt is a key safety measure. PAYS carries zero debt, giving it a Debt/Equity ratio of 0.0, which is significantly better than the 2.0 ceiling used in the screen. This financial flexibility reduces risk and allows the company to reinvest in growth without the burden of interest payments.
Technical Strength and Market Leadership
The L in CAN SLIM calls for leading stocks that outperform the broader market. With a ChartMill Relative Strength rating of 83.5, PAYS outperforms 83.5% of all stocks in the market. This is well above the 75 threshold used in the screener and confirms that the stock is showing the kind of price momentum the system rewards.
Institutional sponsorship, the I factor, currently sits at 47.44% of shares. This is below the screen’s 85% upper limit, meaning there is still room for more institutional buyers to enter. That potential for increased demand is exactly what the system looks for — a stock that is discovered but not yet overcrowded.
A detailed look at the company’s fundamental analysis report reveals a score of 6 out of 10. While the valuation is on the higher side with a P/E of 49.94, this is offset by exceptional growth metrics — the growth sub-rating alone scores 9 out of 10. The technical analysis report gives PAYS a strong rating of 9 out of 10, supported by positive short-term and long-term trends. All key moving averages (20, 50, 100, and 200-day SMAs) are rising, and the stock is trading near the top of its 52-week range.
Risks and Setup Considerations
CAN SLIM also requires attention to risk management. The technical report notes that while the overall trend is excellent, the current setup quality is only medium. Price action has been volatile, and volume has declined slightly in recent days. William O’Neil famously advises never accepting a loss of more than 7–8%, so any entry would ideally wait for a consolidation or a proper base formation before committing capital.
Screening for More Opportunities
This single stock is just one example of what the CAN SLIM approach can uncover. If you want to explore the full list of candidates that meet these criteria, you can access the CAN SLIM High Growth screener to run the same filters and discover other high-growth leaders.
This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research before making any investment decisions.
Read full article here »
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Paysign Inc (NASDAQ:PAYS) Screens as High Growth Leader Under CAN SLIM Methodology
The CAN SLIM system, developed by William O’Neil, is a growth investing methodology that combines fundamental and technical analysis to identify high-potential stocks before they make major price advances. The acronym stands for Current earnings, Annual earnings, New products or management, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. By screening for accelerating quarterly earnings and sales, strong annual growth, low debt, high relative strength, and reasonable institutional ownership, the system aims to pinpoint market leaders in the early stages of a major uptrend. With the current S&P500 long-term and short-term trends both positive, the environment is favorable for applying this strategy.
After scanning the market with a CAN SLIM-based screener, Paysign Inc (NASDAQ:PAYS) emerged as a stock that checks nearly all of the key boxes. The company provides prepaid card programs and digital payout solutions for corporate, consumer, and government clients — a niche that serves growing areas like donor compensation, copay assistance, and employee rewards.
How PAYS Measures Up Against CAN SLIM Fundamentals
The C in CAN SLIM demands strong current quarterly earnings and sales growth. PAYS delivers a year-over-year EPS growth of 80% on the most recent quarter, far surpassing the system’s minimum threshold of 20%. Revenue growth over the same period came in at 50.76%, again well above the 25% hurdle. These numbers signal that the company’s business is accelerating, not just coasting.
The A criteria focuses on consistent annual earnings increases. PAYS has compounded its EPS at an average rate of 86.63% over the last three years, and its Return on Equity stands at 18.91% — comfortably above the 10% minimum. For a CAN SLIM investor, this combination proves the company is not only growing but doing so profitably.
Under the S category, low debt is a key safety measure. PAYS carries zero debt, giving it a Debt/Equity ratio of 0.0, which is significantly better than the 2.0 ceiling used in the screen. This financial flexibility reduces risk and allows the company to reinvest in growth without the burden of interest payments.
Technical Strength and Market Leadership
The L in CAN SLIM calls for leading stocks that outperform the broader market. With a ChartMill Relative Strength rating of 83.5, PAYS outperforms 83.5% of all stocks in the market. This is well above the 75 threshold used in the screener and confirms that the stock is showing the kind of price momentum the system rewards.
Institutional sponsorship, the I factor, currently sits at 47.44% of shares. This is below the screen’s 85% upper limit, meaning there is still room for more institutional buyers to enter. That potential for increased demand is exactly what the system looks for — a stock that is discovered but not yet overcrowded.
A detailed look at the company’s fundamental analysis report reveals a score of 6 out of 10. While the valuation is on the higher side with a P/E of 49.94, this is offset by exceptional growth metrics — the growth sub-rating alone scores 9 out of 10. The technical analysis report gives PAYS a strong rating of 9 out of 10, supported by positive short-term and long-term trends. All key moving averages (20, 50, 100, and 200-day SMAs) are rising, and the stock is trading near the top of its 52-week range.
Risks and Setup Considerations
CAN SLIM also requires attention to risk management. The technical report notes that while the overall trend is excellent, the current setup quality is only medium. Price action has been volatile, and volume has declined slightly in recent days. William O’Neil famously advises never accepting a loss of more than 7–8%, so any entry would ideally wait for a consolidation or a proper base formation before committing capital.
Screening for More Opportunities
This single stock is just one example of what the CAN SLIM approach can uncover. If you want to explore the full list of candidates that meet these criteria, you can access the CAN SLIM High Growth screener to run the same filters and discover other high-growth leaders.
This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research before making any investment decisions.
Read full article here »