Is SUPER MICRO COMPUTER INC (NASDAQ:SMCI) suited for growth investing?

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

Some of the canslim metrics of NASDAQ:SMCI highlighted

• The recent financial report of SUPER MICRO COMPUTER INC demonstrates a 308.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• SUPER MICRO COMPUTER INC has achieved significant quarter-to-quarter (Q2Q) revenue growth of 200.0%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• 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.
• With a solid Return on Equity (ROE) of 20.59%, SUPER MICRO COMPUTER INC exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• SUPER MICRO COMPUTER INC has achieved an impressive Relative Strength (RS) rating of 99.27, showcasing its ability to outperform the broader market. This strong performance positions SUPER MICRO COMPUTER INC as an attractive stock for potential price appreciation.
• With a Debt-to-Equity ratio at 0.35, SUPER MICRO COMPUTER INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• SUPER MICRO COMPUTER INC demonstrates a balanced ownership structure, with institutional shareholders at 56.17%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.

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.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that SMCI is one of the better performing stocks in the market, outperforming 99% of all stocks. On top of that, SMCI also shows a nice and consistent pattern of rising prices.
• SMCI is one of the better performing stocks in the Technology Hardware, Storage & Peripherals industry, it outperforms 96% of 32 stocks in the same industry.
• In the last month SMCI has a been trading in the 741.22 - 972.31 range, which is quite wide. It is currently trading near the high of this range.
• 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.
• 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 SMCI for a complete technical analysis.

How does the complete fundamental picture look for NASDAQ:SMCI?

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.

Taking everything into account, SMCI scores 6 out of 10 in our fundamental rating. SMCI was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. While SMCI has a great profitability rating, 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.

Check the latest full fundamental report of SMCI for a complete fundamental analysis.

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

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.