Is NASDAQ:NVMI suited for CANSLIM investing?

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

Why NASDAQ:NVMI may be interesting for canslim investors.

• The earnings per share (EPS) of NOVA LTD have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 41.46% increase. This reflects the company's ability to improve its profitability over time.
• NOVA LTD has experienced 38.95% q2q revenue growth, indicating a significant sales increase.
• The EPS of NOVA LTD has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• NOVA LTD exhibits a strong Return on Equity (ROE) of 18.89%, 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 exhibited strong Relative Strength(RS) in recent periods, with a current 75.31 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.
• 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.
• The ownership composition of NOVA LTD reflects a balanced investor ecosystem, with institutional shareholders owning 79.15%. This indicates a broader market participation and potential for increased trading liquidity.

Technical analysis of NASDAQ:NVMI

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, NVMI scores 5 out of 10 in our technical rating. Although NVMI has been one of the better performers in the overall market, we have a mixed picture in the medium term time frame. But recently some decent action can be observed again.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• When comparing the yearly performance of all stocks, we notice that NVMI is one of the better performing stocks in the market, outperforming 75% of all stocks.
• NVMI is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 76% of 108 stocks in the same industry.
• NVMI is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so NVMI is lagging the market.
• In the last month NVMI has a been trading in the 168.03 - 208.00 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

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

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.

Overall NVMI gets a fundamental rating of 7 out of 10. We evaluated NVMI against 108 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make NVMI a good candidate for growth investing.

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 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.