Why the growth investor may take a look at NASDAQ:NVMI.

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.

Looking into the canslim metrics of NOVA LTD

• The earnings per share (EPS) of NOVA LTD have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 51.89% increase. This reflects the company's ability to improve its profitability over time.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 27.84%, NOVA LTD showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• NOVA LTD has achieved 33.09% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• 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 92.35 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 76.82%. This indicates a broader market participation and potential for increased trading liquidity.

Technical Analysis Observations

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, NVMI scores 9 out of 10 in our technical rating. NVMI has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• When comparing the yearly performance of all stocks, we notice that NVMI is one of the better performing stocks in the market, outperforming 92% of all stocks. On top of that, NVMI also shows a nice and consistent pattern of rising prices.
• NVMI is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 90% of 109 stocks in the same industry.
• 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 186.79 - 218.93 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

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

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

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

Overall NVMI gets a fundamental rating of 6 out of 10. We evaluated NVMI against 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 correct valuation and a medium growth rate.

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

More growth stocks can be found in our CANSLIM screen.

Disclaimer

This article should in no way be interpreted as advice. 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.