Should you consider 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.

Why NASDAQ:SMCI may be interesting for canslim investors.

• The quarterly earnings of SUPER MICRO COMPUTER INC have shown a 308.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• SUPER MICRO COMPUTER INC has experienced 200.0% q2q revenue growth, indicating a significant sales increase.
• SUPER MICRO COMPUTER INC has experienced 63.99% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• SUPER MICRO COMPUTER INC exhibits a strong Return on Equity (ROE) of 20.59%, 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.
• The Relative Strength (RS) of SUPER MICRO COMPUTER INC has consistently been strong, with a current 94.89 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. SUPER MICRO COMPUTER INC demonstrates promising potential for sustained price momentum.
• Maintaining a Debt-to-Equity ratio of 0.35, SUPER MICRO COMPUTER INC demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• With 57.0% of the total shares held by institutional investors, SUPER MICRO COMPUTER INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Technical analysis of NASDAQ:SMCI

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, SMCI scores 3 out of 10 in our technical rating. Although SMCI 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.

• SMCI is one of the better performing stocks in the Technology Hardware, Storage & Peripherals industry, it outperforms 90% of 32 stocks in the same industry.
• The long term trend is neutral, but the short term trend is negative. Better to stay away from this!
• When comparing the yearly performance of all stocks, we notice that SMCI is one of the better performing stocks in the market, outperforming 94% of all 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 7 months ago.
• SMCI 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 SMCI is lagging the market slightly.

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

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

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall SMCI gets a fundamental rating of 6 out of 10. We evaluated SMCI against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. While SMCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SMCI is growing strongly while it is still valued neutral. This is a good combination! These ratings could make SMCI a good candidate for growth investing.

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

More growth stocks can be found in our CANSLIM screen.

Keep in mind

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.