CAN SLIM(5)

Annual Earnings Growth(2)

How to Identify Companies with Superior Annual Earnings Growth and Other Strong Fundamentals

An Earnings Per Share (EPS) Rating is provided for all stocks.

This proprietary rating measures a company's earnings performance by looking at its:

1) latest two quarters' earnings per share growth,

2) 3-year annual earnings growth rate, and

3) stability of annual earnings growth.

These factors are then weighted and compared to the same measures for all other public companies.

EPS Ratings are on a 1-99 scale, with 99 being highest.

An 80 EPS Rating, for example, indicates that a stock is outperforming 80% of all other companies based on earnings performance.

Seen another way, a stock with an EPS Rating of 80 is in the top 20% of all companies in terms of recent quarterly and annual earnings growth.

Research shows that the stocks that make the most powerful gains usually have an EPS Rating of 80 to 85 or higher.