Earnings growth
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Growth means a company earns more than it did a year ago. Acceleration means it is growing faster than it was last quarter. These recipes look for the second kind, where the trend in the numbers is turning up.
They read reported financial statements, so their answers change when companies file, a few times a year. Every recipe here needs Super or Super Pro, because the fundamental fields do.
Recipes
EPS Acceleration
Super planCompanies worth over $500M with year-over-year quarterly EPS growth of at least 10%, faster than the quarter before, on revenue growth above 5%.
Filters
- Market cap>$500M
- EPS growth≥10%
- Revenue growth>5%
Open the scan to see its other filters.
- How to use it
Check the revenue line. Growth backed by sales holds up better than EPS lifted by buybacks or cost cuts.
- Warning
One strong quarter can come from a weak quarter a year ago. Look at several quarters before you call it a trend.
Revenue Reacceleration
Super Pro planProfitable companies worth over $200M whose quarter-on-quarter revenue growth beat the quarter before and tops 3%.
Filters
- Market cap>$200M
- Diluted EPS>0
- Revenue growth (QoQ)>3%
Open the scan to see its other filters.
- How to use it
Compare the latest quarter with the same quarter last year. Sequential growth can come from a seasonal pattern.
- Warning
Quarter-on-quarter numbers swing more than annual ones. Read the filing before you read a trend into one quarter.
Margin Expansion
Super Pro planCompanies worth over $200M whose gross margin and EBITDA margin are both higher than a year ago, with quarter-on-quarter revenue growth above 3%.
Filters
- Market cap>$200M
- Revenue growth (QoQ)>3%
Open the scan to see its other filters.
- How to use it
Check which margin moved more. Gross margin moves with pricing and product mix. EBITDA margin also shows operating costs.
- Warning
A one-off gain or a change in accounting can widen a margin for one quarter.
CANSLIM
Super Pro planA screen inspired by William O'Neil's CANSLIM: annual EPS growth of 25% or more, quarterly EPS above a year ago, quarter-on-quarter revenue growth of 20% or more, relative strength of 70 or higher and price within 15% of its 52-week high.
Filters
- Market cap>$100M
- Relative strength vs market≥70
- SMA(c,50)>SMA(c,200)
- Relative volume(v,60)>1
- EPS growth≥25%
- Revenue growth (QoQ)≥20%
Open the scan to see its other filters.
- How to use it
Expect a short list, often a handful of names. Open each chart and check where it sits against its recent high.
- Warning
It approximates the screenable parts of the method. The market-direction and new-product parts of CANSLIM are left to you.
Quick reference
Tips
- Add a trend filter such as SMA(50)>SMA(200) to see which growth stories the market agrees with.
- Run these scans after earnings season, when most companies have filed the quarter.
- The fields behind each recipe are explained in Fundamental metrics.