Is NASDAQ:NVMI a Fit for Growth Investing Strategies?

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

What matters for canslim investors.

• In the most recent financial report, NOVA LTD reported a 51.89% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• With consistent quarter-to-quarter (Q2Q) revenue growth of 27.84%, NOVA LTD exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• NOVA LTD has experienced 33.09% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• The Return on Equity(ROE) of NOVA LTD is 18.25%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• NOVA LTD has exhibited strong Relative Strength(RS) in recent periods, with a current 93.53 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. NOVA LTD shows promising potential for continued price momentum.
• NOVA LTD maintains a healthy Debt-to-Equity ratio of 0.0. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• The ownership composition of NOVA LTD reflects a balanced investor ecosystem, with institutional shareholders owning 76.55%. This indicates a broader market participation and potential for increased trading liquidity.

Insights from Technical Analysis

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

We assign a technical rating of 9 out of 10 to NVMI. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, NVMI is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, NVMI did better than 93% of all other stocks. On top of that, NVMI also shows a nice and consistent pattern of rising prices.
• NVMI is part of the Semiconductors & Semiconductor Equipment industry. There are 109 other stocks in this industry. NVMI outperforms 93% of them.
• NVMI is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so NVMI is lagging the market slightly.
• In the last month NVMI has a been trading in the 158.00 - 236.64 range, which is quite wide. It is currently trading near the high of this range.

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

What is the full fundamental picture of NASDAQ:NVMI telling us.

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

Taking everything into account, NVMI scores 6 out of 10 in our fundamental rating. NVMI was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. NVMI has an excellent profitability rating, but there are some minor concerns on its financial health. NVMI has a decent growth rate and is not valued too expensively.

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

Our CANSLIM screen will find you more ideas suited for growth investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.