The CAN SLIM system, developed by William O’Neil, is a position trading methodology that combines fundamental analysis with technical analysis to identify high-growth market leaders. It screens for stocks with accelerating quarterly earnings and sales, strong annual earnings growth, new products or management, institutional sponsorship, and leadership relative to the broader market. The approach also requires disciplined risk management and attention to overall market direction. One stock that currently passes all the core filters of a CAN SLIM screen is DHT Holdings Inc (NYSE:DHT), a crude oil tanker operator active in the Very Large Crude Carrier (VLCC) segment.
Quarterly Earnings and Sales Momentum
The "C" in CAN SLIM stands for Current Big or Accelerating Quarterly Earnings and Sales per Share. O’Neil suggests looking for at least 20% year-over-year EPS growth, and ideally accelerating figures. DHT Holdings clears this threshold by a wide margin, with EPS growth of 326.67% in the most recent quarter compared to the same quarter last year. Revenue growth came in at 98.14% over the same period, well above the minimum of 25%. These sharp accelerations indicate the company is currently in a strong earnings cycle, which is exactly the kind of momentum the system seeks.
On the annual side ("A"), the system demands consistent yearly EPS growth and solid profitability. DHT Holdings shows a 3-year EPS compound annual growth rate of approximately 37%, beating the minimum requirement of 25%. Its return on equity sits at 26.89%, more than double the 10% threshold that O’Neil recommends. This combination of multi-year growth and high profitability suggests the company has been reinvesting capital effectively.
Supply, Demand, and Market Leadership
The "S" and "L" criteria focus on supply and demand dynamics and leadership. CAN SLIM investors prefer companies with low debt and strong relative price performance. DHT carries a debt-to-equity ratio of just 0.33, far below the 2.0 ceiling. Its relative strength score is 87.24, meaning it has outperformed more than 87% of all stocks over the past year. That places it firmly in the category of market leaders that the system targets.
Institutional sponsorship ("I") is also a key requirement. The ideal setup is a company that institutions are discovering but not overcrowding. DHT has institutional ownership of roughly 81.38%, which is below the recommended cap of 85%. This leaves room for additional accumulation by large players without excessive concentration.
Technical and Fundamental Assessment
The technical picture offers a mixed but still relevant setup. According to the technical analysis report, DHT scores a 5 out of 10 overall, with a setup quality rating of 4 out of 10. The long-term trend remains positive, and the stock has outperformed 87% of all equities over the past year. However, the short- and medium-term signals are neutral, and the stock is currently trading near the lower end of its recent range. This consolidation may serve as the base that CAN SLIM investors look for before an eventual breakout.
On the fundamental side, the fundamental analysis report gives DHT a score of 6 out of 10. Profitability stands out: return on assets, return on equity, and profit margins all rank among the best in the Oil, Gas & Consumable Fuels industry. The valuation is also reasonable, with a forward P/E of 9.97 against an industry average that is significantly higher. The main concern is financial health, which is adequate but not exceptional, and the dividend, while high at nearly 9%, has been declining over time.
Screening for Similar Setups
The combination of explosive quarterly growth, strong annual earnings, low debt, high relative strength, and manageable institutional ownership makes DHT Holdings a textbook example of a CAN SLIM candidate. For those looking to identify more stocks that meet these same criteria, the CAN SLIM screen offers a starting point that can be further refined based on individual preferences.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making any trading decisions.
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DHT Holdings Inc (NYSE:DHT) Passes CAN SLIM Screen as High Growth Leader with Accelerating Earnings and Revenue Momentum
The CAN SLIM system, developed by William O’Neil, is a position trading methodology that combines fundamental analysis with technical analysis to identify high-growth market leaders. It screens for stocks with accelerating quarterly earnings and sales, strong annual earnings growth, new products or management, institutional sponsorship, and leadership relative to the broader market. The approach also requires disciplined risk management and attention to overall market direction. One stock that currently passes all the core filters of a CAN SLIM screen is DHT Holdings Inc (NYSE:DHT), a crude oil tanker operator active in the Very Large Crude Carrier (VLCC) segment.
Quarterly Earnings and Sales Momentum
The "C" in CAN SLIM stands for Current Big or Accelerating Quarterly Earnings and Sales per Share. O’Neil suggests looking for at least 20% year-over-year EPS growth, and ideally accelerating figures. DHT Holdings clears this threshold by a wide margin, with EPS growth of 326.67% in the most recent quarter compared to the same quarter last year. Revenue growth came in at 98.14% over the same period, well above the minimum of 25%. These sharp accelerations indicate the company is currently in a strong earnings cycle, which is exactly the kind of momentum the system seeks.
On the annual side ("A"), the system demands consistent yearly EPS growth and solid profitability. DHT Holdings shows a 3-year EPS compound annual growth rate of approximately 37%, beating the minimum requirement of 25%. Its return on equity sits at 26.89%, more than double the 10% threshold that O’Neil recommends. This combination of multi-year growth and high profitability suggests the company has been reinvesting capital effectively.
Supply, Demand, and Market Leadership
The "S" and "L" criteria focus on supply and demand dynamics and leadership. CAN SLIM investors prefer companies with low debt and strong relative price performance. DHT carries a debt-to-equity ratio of just 0.33, far below the 2.0 ceiling. Its relative strength score is 87.24, meaning it has outperformed more than 87% of all stocks over the past year. That places it firmly in the category of market leaders that the system targets.
Institutional sponsorship ("I") is also a key requirement. The ideal setup is a company that institutions are discovering but not overcrowding. DHT has institutional ownership of roughly 81.38%, which is below the recommended cap of 85%. This leaves room for additional accumulation by large players without excessive concentration.
Technical and Fundamental Assessment
The technical picture offers a mixed but still relevant setup. According to the technical analysis report, DHT scores a 5 out of 10 overall, with a setup quality rating of 4 out of 10. The long-term trend remains positive, and the stock has outperformed 87% of all equities over the past year. However, the short- and medium-term signals are neutral, and the stock is currently trading near the lower end of its recent range. This consolidation may serve as the base that CAN SLIM investors look for before an eventual breakout.
On the fundamental side, the fundamental analysis report gives DHT a score of 6 out of 10. Profitability stands out: return on assets, return on equity, and profit margins all rank among the best in the Oil, Gas & Consumable Fuels industry. The valuation is also reasonable, with a forward P/E of 9.97 against an industry average that is significantly higher. The main concern is financial health, which is adequate but not exceptional, and the dividend, while high at nearly 9%, has been declining over time.
Screening for Similar Setups
The combination of explosive quarterly growth, strong annual earnings, low debt, high relative strength, and manageable institutional ownership makes DHT Holdings a textbook example of a CAN SLIM candidate. For those looking to identify more stocks that meet these same criteria, the CAN SLIM screen offers a starting point that can be further refined based on individual preferences.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making any trading decisions.
Read full article here »