Should you consider NASDAQ:ALGM for growth investing?

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ALLEGRO MICROSYSTEMS INC (NASDAQ:ALGM) is suited for growth investing. Investors should of couse do their own research, but we spotted ALLEGRO MICROSYSTEMS INC showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of NASDAQ:ALGM highlighted

• The quarterly earnings of ALLEGRO MICROSYSTEMS INC have shown a 62.5% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The q2q revenue growth of 27.8% of ALLEGRO MICROSYSTEMS INC highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• The 3-year EPS growth of ALLEGRO MICROSYSTEMS INC (69.11%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• With a solid Return on Equity (ROE) of 23.18%, ALLEGRO MICROSYSTEMS INC exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• ALLEGRO MICROSYSTEMS INC has exhibited strong Relative Strength(RS) in recent periods, with a current 91.54 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. ALLEGRO MICROSYSTEMS INC shows promising potential for continued price momentum.
• ALLEGRO MICROSYSTEMS INC exhibits a favorable Debt-to-Equity ratio at 0.02. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• With 49.98% of the total shares held by institutional investors, ALLEGRO MICROSYSTEMS INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Zooming in on the technicals.

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall ALGM gets a technical rating of 1 out of 10. ALGM has been an average performer in the overall market. Also recent evolutions are not that positive: both the medium and short term time frames give negative signs.

• ALGM is part of the Semiconductors & Semiconductor Equipment industry. There are 105 other stocks in this industry. ALGM outperforms 82% of them.
• The long term trend is neutral, but the short term trend is negative. Better to stay away from this!
• When comparing the yearly performance of all stocks, we notice that ALGM is one of the better performing stocks in the market, outperforming 91% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• ALGM is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so ALGM is lagging the market slightly.

For an up to date full technical analysis you can check the technical report of ALGM

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

ALGM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ALGM a very profitable company, without any liquidiy or solvency issues. ALGM is valued quite expensively, but it does show have an excellent growth rating. This makes ALGM very considerable for growth and quality investing!

Our latest full fundamental report of ALGM contains the most current fundamental analsysis.

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.