Is NASDAQ:NVMI suited for growth investing?

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.

• The EPS of NOVA LTD has exhibited growth from one quarter to another (Q2Q), with a 51.89% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• NOVA LTD has demonstrated strong q2q revenue growth of 27.84%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• NOVA LTD has achieved 33.09% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• NOVA LTD exhibits a strong Return on Equity (ROE) of 18.25%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• NOVA LTD has achieved an impressive Relative Strength (RS) rating of 78.78, showcasing its ability to outperform the broader market. This strong performance positions NOVA LTD as an attractive stock for potential price appreciation.
• With a Debt-to-Equity ratio at 0.0, NOVA LTD showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• NOVA LTD exhibits a favorable ownership structure, with an institutional shareholder ownership of 22.37%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

Analyzing the Technical Aspects

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.

We assign a technical rating of 2 out of 10 to NVMI. Although NVMI 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.

• NVMI is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 80% of 108 stocks in the same industry.
• When comparing the yearly performance of all stocks, we notice that NVMI is one of the better performing stocks in the market, outperforming 78% of all stocks. However, we also see that NVMI couldn't keep up this performance in the last couple of months.
• NVMI 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 NVMI is lagging the market slightly.

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

Fundamental analysis of NASDAQ:NVMI

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

NVMI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. NVMI scores excellent on profitability, 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.

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.