Should you consider SUPER MICRO COMPUTER INC (NASDAQ:SMCI) for growth investing?

In this article we will dive into SUPER MICRO COMPUTER INC (NASDAQ:SMCI) as a possible candidate for growth investing. Investors should always do their own research, but we noticed SUPER MICRO COMPUTER INC 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, SUPER MICRO COMPUTER INC reported a 308.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• SUPER MICRO COMPUTER INC has experienced 200.0% q2q revenue growth, indicating a significant sales increase.
• The 3-year EPS growth of SUPER MICRO COMPUTER INC (63.99%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• SUPER MICRO COMPUTER INC has a healthy Return on Equity(ROE) of 20.59%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• SUPER MICRO COMPUTER INC has achieved an impressive Relative Strength (RS) rating of 98.91, showcasing its ability to outperform the broader market. This strong performance positions SUPER MICRO COMPUTER INC as an attractive stock for potential price appreciation.
• SUPER MICRO COMPUTER INC maintains a healthy Debt-to-Equity ratio of 0.35. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• SUPER MICRO COMPUTER INC demonstrates a balanced ownership structure, with institutional shareholders at 56.19%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.

Technical Analysis Observations

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall SMCI gets a technical rating of 6 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• SMCI is part of the Technology Hardware, Storage & Peripherals industry. There are 32 other stocks in this industry. SMCI outperforms 90% of them.
• Looking at the yearly performance, SMCI did better than 98% of all other stocks. We also observe that the gains produced by SMCI over the past year are nicely spread over this period. However, this overall performance is mostly based on the strong move around 4 months ago.
• SMCI is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so SMCI is lagging the market.
• In the last month SMCI has a been trading in the 700.00 - 972.31 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

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

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

SMCI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. SMCI has an excellent profitability rating, but there are some minor concerns on its financial health. SMCI is valued quite expensive, but it does show an excellent growth. These ratings could make SMCI a good candidate for growth investing.

Our latest full fundamental report of SMCI contains the most current fundamental analsysis.

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.