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.

Why NASDAQ:SMCI may be interesting for canslim investors.

• In the most recent financial report, SUPER MICRO COMPUTER INC reported a 78.06% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• With consistent quarter-to-quarter (Q2Q) revenue growth of 143.0%, SUPER MICRO COMPUTER INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• SUPER MICRO COMPUTER INC has achieved 106.0% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• With a favorable Return on Equity (ROE) of 20.59%, SUPER MICRO COMPUTER INC demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• The Relative Strength (RS) of SUPER MICRO COMPUTER INC has been consistently solid, with a current 96.01 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. SUPER MICRO COMPUTER INC exhibits strong prospects for further price appreciation.
• SUPER MICRO COMPUTER INC exhibits a favorable Debt-to-Equity ratio at 0.35. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• With 53.3% 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 Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 3 out of 10 to SMCI. 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 part of the Technology Hardware, Storage & Peripherals industry. There are 32 other stocks in this industry. SMCI outperforms 93% of them.
• Looking at the yearly performance, SMCI did better than 96% 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 7 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 478.56 - 730.01 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 SMCI for a complete technical analysis.

Zooming in on the fundamentals.

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.

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 has a great profitability rating, there are some minor concerns on its financial health. SMCI is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, SMCI could be worth investigating further 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

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.