What is CANSLIM?

CANSLIM is not a way to lose weight but it is a simple way to remember an approach formulated by William J. O’Neil in his classic investing book “How to make money in stocks”.

It combines fundamentals and technical analysis into a cohesive strategy.

Below we will summarize the key elements of the strategy:

C – Current Earnings.

Has the company made a strong recent earnings announcement which is considerably more than the earnings one year previously?

– Annual Earnings. 

Does the company show good earnings growth for the past 5 years?

N – New Products or Management. 

Has the company innovated its product base or injected new management to seek higher performance?

S – Supply and Demand.

Does the stock have increasing demand in the marketplace, is volume increasing with price?

L – Leaders.

Is the company a leader in its marketplace?

I – Institutional Ownership.

Does the stock have some institutional ownership, but not too much ownership?

M – Market Direction.

Understanding the overall market direction is important to be able to time your purchase of the stock effectively.


The CANSLIM method is a well thought out strategy combining fundamental success factors with market timing.


A lot of people follow this method so it can be difficult to implement successfully with an edge.

Average trade duration

Medium Term – months to years

Effort to maintain the strategy

Medium – you will need to keeps up to date on the company fundamentals, competition, business climate and the quarterly financial results and balance sheet changes.

Risk Rating



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