O’Neil CANSLIM Scanner — Earnings Growth Meets Chart Strength
William O’Neil studied every great stock market winner from the 1880s onward and distilled the common traits into seven letters: CANSLIM. This scanner applies all seven criteria automatically across roughly 1,900 US stocks every evening, surfacing the names where explosive earnings growth, institutional accumulation, and leading relative strength all converge at the same time.
O’Neil founded Investor’s Business Daily and built one of the most successful track records in growth investing history. His core insight was that winning stocks share a remarkably consistent set of characteristics before they make their biggest moves — and that those characteristics can be measured. He documented the system in his bestselling book How to Make Money in Stocks, which has sold millions of copies worldwide.
CANSLIM is an acronym where each letter represents a non-negotiable criterion. C is for Current quarterly earnings per share — the company must be showing meaningful acceleration in its most recent quarter, ideally 25% or more year-over-year. A is for Annual earnings growth — the company needs a multi-year track record of growing earnings, not just one lucky quarter. N stands for New products, new management, or new price highs — something must be different about the company, and the stock should be making new highs, not languishing near old lows. S is Supply and demand — shares outstanding and trading volume tell you whether institutions are fighting to accumulate or quietly distributing. L is Leader or laggard — the stock must be a leader in its industry group, not a sympathy play trailing behind. I is Institutional sponsorship — mutual funds, pension funds, and other large investors must be buying, because their sustained demand is what drives major advances. M is Market direction — even the best stocks struggle in a bear market, so the overall market must be in a confirmed uptrend.
This is a fundamentals-first approach. Earnings growth is required, not optional. A stock with a beautiful chart pattern but flat or declining earnings will never appear in this scan. O’Neil’s research showed that the greatest winners had an average earnings increase of 70% in the quarter before their big move. The scanner enforces this standard automatically.
O’Neil is not affiliated with SwingTradeScanner. His published books and Investor’s Business Daily are the source material. We independently implemented the CANSLIM criteria in code, combining fundamental screening with technical analysis and institutional tracking.
How the CANSLIM scanner works
Every evening after the close, the scanner evaluates the full universe against all seven CANSLIM criteria. The process is strict and sequential:
- Earnings screen (C + A) — Current quarterly EPS must show strong year-over-year growth. Annual earnings must demonstrate a consistent multi-year uptrend. Stocks with decelerating or negative earnings growth are eliminated immediately.
- Newness and price action (N) — The stock should be near or at new 52-week highs, ideally breaking out of a sound base pattern. New products, services, or management catalysts are flagged when detected in recent filings.
- Supply, demand, and sponsorship (S + I) — Volume patterns are analyzed to detect institutional accumulation. The scanner checks the number of institutional holders and recent changes in fund ownership. Rising fund ownership alongside increasing volume on up days is the ideal pattern.
- Leadership and market (L + M) — Relative strength must rank in the top tier. The stock must be a leader within its industry group, not a laggard. And the broader market must be in a confirmed uptrend — during corrections, the scanner flags that conditions are unfavorable.
Only stocks passing all seven criteria survive. The result is a focused list of true growth leaders with the earnings power, institutional backing, and chart strength that O’Neil identified as prerequisites for major price advances.
What you see in each result
- EPS Rank — A 1–99 ranking of the company’s earnings-per-share growth relative to all other stocks. O’Neil targeted stocks with an EPS Rank of 80 or higher.
- RS Rating — Relative Strength rating on a 1–99 scale, measuring price performance over the past 12 months against the entire universe. Leaders rank 80 or above.
- SMR Rating — A composite grade from A to E covering Sales growth, profit Margins, and Return on equity. This single grade tells you whether the company’s fundamental engine is strong.
- A/D Rating — Accumulation/Distribution grade showing whether institutional investors are net buyers or net sellers of the stock over recent weeks.
- Daily chart — Candlestick chart with key moving averages and volume, showing the base pattern and proximity to a proper buy point.
- Earnings detail — Quarterly and annual EPS history, revenue growth, next earnings date, and analyst estimates. The fundamental story at a glance.
Questions about the CANSLIM scanner
What is the CANSLIM method?
CANSLIM is a growth stock selection system developed by William O’Neil. Each letter stands for a criterion: Current earnings, Annual earnings, New products or highs, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. A stock must satisfy all seven to qualify. The method combines fundamental strength with technical timing.
What do EPS Rank, RS Rating, SMR, and A/D mean?
EPS Rank measures earnings growth on a 1–99 scale. RS Rating ranks 12-month price performance against the market. SMR grades Sales, Margins, and Return on equity from A to E. A/D tracks whether institutions are net buying or selling. O’Neil recommended an EPS Rank and RS Rating of 80 or higher.
Who is William O’Neil?
William J. O’Neil founded Investor’s Business Daily and the research firm William O’Neil + Co. He studied every market winner from the 1880s onward and documented his findings in How to Make Money in Stocks. SwingTradeScanner independently implemented his published CANSLIM criteria in code. He is not affiliated with this product.
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