> For the complete documentation index, see [llms.txt](https://matterhorn-doc.mometic.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://matterhorn-doc.mometic.com/investigate-the-business/can-slim.md).

# CAN SLIM

Understand the seven CAN SLIM letters in Matterhorn, the measured timing signals, and the distinction between a failed criterion and unavailable evidence.

CAN SLIM adds a growth-stock setup perspective to the company research. Matterhorn computes the displayed criteria deterministically, then supplies the snapshot to the research manager as context. It is separate from the ML ranking.

The framework originates with William O'Neil and Investor's Business Daily. Matterhorn implements available measurements and explains its limitations; this is not an IBD proprietary rating or endorsement. [IBD's growth-stock educational material](https://marketsurge-files.investors.com/2024/07/StockGuide-Mid-year-2024.pdf) provides background.

| Letter | Question                                  | Matterhorn's measured interpretation                                                                                          |
| ------ | ----------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| C      | Are current quarterly earnings improving? | Comparable reported quarterly earnings, with documented basis handling                                                        |
| A      | Is annual earnings growth established?    | Supported multi-year annual earnings history                                                                                  |
| N      | Is something new supporting the story?    | The implemented numeric leg measures proximity to a 52-week high; new products or management are not comprehensively detected |
| S      | Is stock supply and demand constructive?  | Share-count change, with volume and float context when available                                                              |
| L      | Is the stock a leader?                    | Twelve-month performance percentile within the measured company universe                                                      |
| I      | Is there institutional sponsorship?       | Stored institutional-holder evidence, rather than a proxy inferred from price                                                 |
| M      | Is the general market supportive?         | Available benchmark trend data; company-universe breadth is separately labeled                                                |

## Read the denominator

“4 of 6 measurable met” does not mean four of all seven criteria passed. One criterion is unavailable. **Not met** identifies a measured weakness; **not measurable** or **uncollected** identifies a limitation of the record.

Open or hover the individual criterion to read its rationale and date. For example, the **N** label includes new products and management, but the implemented measurement does not claim to have surveyed either. A company can have a genuine new product while failing the numeric price-high leg.

## Combine business and timing evidence

A compelling business case with a weak setup can remain worth monitoring. A strong setup with poor business support can be a fragile research candidate. The manager should express both findings instead of forcing them into one recommendation.

Institutional records and earnings have reporting lags. The market-wide **M** reading also requires a valid benchmark series; it is not guessed from the company's own price action.

> **Pro Tip — Ask why a letter failed.** Dilution, an earnings slowdown, and a stock below its high are different problems with different remedies. Counting letters is the beginning of the investigation.

Related: [Moved this week](/find-opportunities/moved-this-week.md), [research-manager review](/investigate-the-business/analyst-review.md).