Is NASDAQ:SMCI a Fit for Growth Investing Strategies?

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.

Some of the canslim metrics of NASDAQ:SMCI highlighted

• The quarterly earnings of SUPER MICRO COMPUTER INC have shown a 78.06% 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
• The quarter-to-quarter (Q2Q) revenue growth of 143.0% of SUPER MICRO COMPUTER INC has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue 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 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 79.97, 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 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 institutional shareholders at 53.33%, SUPER MICRO COMPUTER INC demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.

Deciphering the Technical Picture of NASDAQ:SMCI

As part of its analysis, ChartMill provides a comprehensive Technical 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 technical indicators and properties.

We assign a technical rating of 1 out of 10 to SMCI. SMCI has been an average performer in the overall market. Also recent evolutions are not that positive: both the medium and short term time frames give negative signs.

• SMCI is one of the better performing stocks in the Technology Hardware, Storage & Peripherals industry, it outperforms 80% of 32 stocks in the same industry.
• Looking at the yearly performance, SMCI did better than 79% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.

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

What else is there to say on the fundamentals of NASDAQ:SMCI?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of 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 growing strongly while it is still valued neutral. This is a good combination! This makes SMCI very considerable 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

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.