In this article, I’ll provide an overview of my latest watchlist. I won’t delve too deeply into the fundamental principles of how the watchlist is constructed, as the name of this website suggests my focus is on identifying securities that align with the CAN SLIM criteria or come close to it.
DISCLAIMER: Please note that I am not a seasoned professional, and the securities I discuss should not be considered as buying recommendations. I do not assume responsibility for the price performance of any of the stocks mentioned on this website. The information presented here is intended for informational and educational purposes only.
Below, you’ll find my latest Ready-To-Go watchlist ranked by their past performance, from the best to the least favorable (though all selections are strong):
mod
MOD is attracting attention with its Up/Down volume indicator signaling accumulation. However, its sales growth is a concern at only 7% year-over-year, well below the preferred 20%. Despite this, the company is in a leading industry with strong EPS growth and a notable 20% ROE, exceeding the minimum by a fair margin.
The stock’s current market performance is intriguing. Its price is above the base but is testing the EMA 21 line. A bounce from this level could make it an attractive buy. Additionally, its high RS rating and an upward-trending RS line suggest it’s outperforming the broader market.
phm
PHM shows clear signs of institutional accumulation, yet it doesn’t fully meet the CAN SLIM criteria due to discrepancies in EPS and sales growth. Nonetheless, its strong 31% ROE and positioning in a leading sector add to its appeal.
The stock’s technical indicators present a potential buying opportunity. With its price moving out of the base and testing the EMA 21 line, near the SMA 50, PHM appears to be at a pivotal point. Its high RS rating and an upward-trending RS line further enhance its attractiveness.
ddog
DDOG recently faced some volatility, leading to my exit from the stock. Despite this, its current price seems more stable, though still somewhat volatile compared to December. Its fundamentals are impressive, with robust EPS growth, sales growth, and ROE, placing it in a leading industry.
I am considering re-entering DDOG, especially as the price approaches the EMA 21 line, indicating a low-risk buying opportunity. The proximity of both SMA 50 and EMA 21 to the current price adds to this appeal. However, the upcoming earnings release in 15 days adds a note of caution to this potential investment.
pgti
PGTI, while in a leading industry with a good RS rating, doesn’t completely fit the CAN SLIM criteria, primarily due to slightly lower EPS and sales growth. Nevertheless, its ROE stands strong at 20%.
The stock is showing signs of distribution by institutions, which could lead to increased volatility. However, its Up/Down volume indicator is positive at 1.9. Currently, the stock price is showing tight action, closely matching the EMA 21 price, suggesting potential for an upward movement.
wday
WDAY’s stock profile is marked by a strong RS rating and an upward trend in its RS line, indicating robust market potential. The stock is part of a leading industry and has been attracting institutional accumulation.
However, WDAY’s sales growth is slightly less than ideal at 17% quarter-over-quarter. Other financial metrics are satisfactory, positioning it as a viable investment candidate. The stock’s current price is about 3% above the EMA 21, which might indicate it is slightly extended at the moment.
conclusion
In my latest watchlist, I’ve personally selected stocks based on the CAN SLIM criteria, with a few exceptions.
- MOD is a potential buy for me, with its strong EPS growth and high ROE, despite its lower sales growth.
- PHM, while not perfectly fitting CAN SLIM, stands out with a high ROE and strong sector position. I see its current price movement as a potential buying opportunity.
- DDOG has excellent fundamentals and is in a leading industry. I’m considering a small position, given its price stability and upcoming earnings release.
- PGTI, despite not fully meeting CAN SLIM, has a good ROE and promising technicals, though institutional distribution suggests possible volatility.
- WDAY, slightly extended in price, still appeals to me with its uptrend in RS and solid financials.
This watchlist reflects my approach to balancing fundamental analysis with technical indicators, each stock offering unique investment opportunities while acknowledging the associated risks.
