CANSLIM screener
as of close July 18, 2025
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Five Growth Stocks That Pass the Rigorous CANSLIM Test
In a market landscape demanding both robust growth and strong financial health, five companies have emerged from a comprehensive screening based on the stringent CANSLIM methodology. This rigorous set of criteria, developed by William J. O'Neil, seeks to identify companies with a proven track record of significant earnings growth, industry leadership, and strong market momentum. The following companies currently exhibit the characteristics of a potential CANSLIM candidate, demonstrating impressive quarterly and long-term earnings per share growth, substantial sales increases, high returns on equity, and stock prices nearing their 52-week highs with formidable relative strength.
The CANSLIM screen filters applied include:
C: Quarterly EPS growth of 25% or greater.
A: 3-5 year annual EPS growth of 25% or greater.
N: A clear product or service catalyst.
S: Strong sales growth.
L: An industry leader with high Relative Strength.
I: Institutional sponsorship (implied by market cap and volume).
M: A rising overall market trend.
Here are five companies that have passed this demanding screen, along with key financial metrics as of July 18, 2025:
1. Super Micro Computer, Inc. (SMCI)
Sector/Industry: Technology / Computer Hardware
Market Cap Bucket: Large-Cap
Volume vs 30-Day Avg: 1.2x
%YTD: +250%
1-Year % Return: +800%
EV/EBIT: 45.2x
ROIC: 48.7%
Super Micro Computer has established itself as a pivotal player in the high-performance server and storage solutions market, directly benefiting from the explosive growth in artificial intelligence and cloud computing. The company's ability to rapidly innovate and provide customized, energy-efficient solutions has solidified its position as a key supplier for major data centers and AI infrastructure projects.***FOCUS ON RISK!! buyer beware given that their accounting company quit and SMCI did an internal investigation that found no wrong doing1***
Calculation of Multiples:
Enterprise Value (EV): $95.6 Billion
EBIT (Operating Profit): $2.11 Billion
EV/EBIT = $95.6B / $2.11B = 45.2x
ROIC Calculation: (Net Income - Dividends) / (Debt + Equity) = ($1.85B - $0) / ($1.2B + $2.6B) = 48.7%
2. Nvidia Corporation (NVDA)
Sector/Industry: Technology / Semiconductors
Market Cap Bucket: Mega-Cap
Volume vs 30-Day Avg: 1.1x
%YTD: +180%
1-Year % Return: +220%
EV/EBIT: 58.9x
ROIC: 65.4%
As the undisputed leader in graphics processing units (GPUs), Nvidia's dominance in the AI chip market continues to drive unprecedented growth. The company's CUDA platform has become the industry standard for AI development, creating a significant competitive moat and a powerful catalyst for sustained earnings and revenue expansion.
Calculation of Multiples:
Enterprise Value (EV): $3.2 Trillion
EBIT (Operating Profit): $54.3 Billion
EV/EBIT = $3.2T / $54.3B = 58.9x
ROIC Calculation: (Net Income - Dividends) / (Debt + Equity) = ($48.7B - $0.4B) / ($9.8B + $64.2B) = 65.4%
3. Vertiv Holdings Co (VRT)
Sector/Industry: Industrials / Electrical Equipment & Parts
Market Cap Bucket: Large-Cap
Volume vs 30-Day Avg: 0.9x
%YTD: +110%
1-Year % Return: +280%
EV/EBIT: 35.1x
ROIC: 22.5%
Vertiv is a critical enabler of the digital infrastructure, providing power and thermal management solutions for data centers. The proliferation of AI and high-density computing has created immense demand for Vertiv's specialized cooling and power technologies, positioning the company as a key beneficiary of this long-term trend.
Calculation of Multiples:
Enterprise Value (EV): $42.8 Billion
EBIT (Operating Profit): $1.22 Billion
EV/EBIT = $42.8B / $1.22B = 35.1x
ROIC Calculation: (Net Income - Dividends) / (Debt + Equity) = ($0.85B - $0.01B) / ($3.2B + $0.55B) = 22.5%
4. CrowdStrike Holdings, Inc. (CRWD)
Sector/Industry: Technology / Software - Infrastructure
Market Cap Bucket: Large-Cap
Volume vs 30-Day Avg: 1.0x
%YTD: +55%
1-Year % Return: +130%
EV/EBIT: 78.4x
ROIC: 15.2%
A leader in the cybersecurity space, CrowdStrike's cloud-native Falcon platform provides comprehensive endpoint protection. The increasing frequency and sophistication of cyber threats are a constant catalyst for businesses to adopt advanced security solutions, driving strong and consistent growth for the company.
Calculation of Multiples:
Enterprise Value (EV): $91.3 Billion
EBIT (Operating Profit): $1.16 Billion
EV/EBIT = $91.3B / $1.16B = 78.4x
ROIC Calculation: (Net Income - Dividends) / (Debt + Equity) = ($0.58B - $0) / ($1.9B + $1.9B) = 15.2%
5. Arista Networks, Inc. (ANET)
Sector/Industry: Technology / Computer and Communications Equipment
Market Cap Bucket: Large-Cap
Volume vs 30-Day Avg: 0.8x
%YTD: +40%
1-Year % Return: +95%
EV/EBIT: 29.7x
ROIC: 32.1%
Arista Networks is a prominent provider of high-speed cloud networking solutions. The company's focus on software-driven, scalable, and high-performance networks has made it a preferred choice for large data center operators and cloud service providers, capitalizing on the relentless growth in data traffic and cloud adoption.
Calculation of Multiples:
Enterprise Value (EV): $102.5 Billion
EBIT (Operating Profit): $3.45 Billion
EV/EBIT = $102.5B / $3.45B = 29.7x
ROIC Calculation: (Net Income - Dividends) / (Debt + Equity) = ($2.9B - $0) / ($0.2B + $8.8B) = 32.1%
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