In traditional CAN SLIM, strong earnings and sales are key. With that said, there are many excellent growth stocks that are good candidates for a watchlist, yet they have minimal or no earnings to date.
Many of my screens start with a similar set of criteria:
- Price over $20
- 20,000,000 in dollar volume
- Composite Rating of 90+
I find this is a solid baseline, adjust as you like. With 20,000,000 in dollar volume, you are ensured there is adequate liquidity.
For this particular screen, notice the reference to sales acceleration for the last three quarters. For the most recent quarter sales, I’m looking for an increase of at least 25%.
FVRR is a good example of a stock from the result set that has strong sales growth, a monster move over the past few months, yet only one quarter of earnings posted.
Following is a list of all stocks that met the sales acceleration criteria. I selected four stocks and noted the sales acceleration in red.