High growth, ROE and relative strength for NASDAQ:ALGM, growth investors may appreciate this.

In this article we will dive into ALLEGRO MICROSYSTEMS INC (NASDAQ:ALGM) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ALLEGRO MICROSYSTEMS INC showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Why NASDAQ:ALGM may be interesting for canslim investors.

• 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
• ALLEGRO MICROSYSTEMS INC has achieved 27.8% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• ALLEGRO MICROSYSTEMS INC has experienced 69.11% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• 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 93.35 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.
• With a current Debt-to-Equity ratio at 0.02, ALLEGRO MICROSYSTEMS INC showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• ALLEGRO MICROSYSTEMS INC demonstrates a balanced ownership structure, with institutional shareholders at 51.03%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 3 out of 10 to ALGM. Although ALGM is scoring some points because its good overall performance in the market in the past year, recent evolutions are not that positive. Both the medium and short term picture give negative signs.

• When comparing the yearly performance of all stocks, we notice that ALGM is one of the better performing stocks in the market, outperforming 93% of all stocks. We also observe that the gains produced by ALGM over the past year are nicely spread over this period.
• ALGM is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 84% of 105 stocks in the same industry.
• ALGM is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so ALGM is lagging the market.

Check the latest full technical report of ALGM for a complete technical analysis.

How does the complete fundamental picture look for NASDAQ:ALGM?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous 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. ALGM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALGM is valued quite expensive, but it does show an excellent growth. These ratings would make ALGM suitable for growth and quality investing!

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

More growth stocks can be found in our CANSLIM screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.