Is VIRCO MFG CORPORATION (NASDAQ:VIRC) suited for growth investing?

In this article we will dive into VIRCO MFG CORPORATION (NASDAQ:VIRC) as a possible candidate for growth investing. Investors should always do their own research, but we noticed VIRCO MFG CORPORATION showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Why NASDAQ:VIRC may be interesting for canslim investors.

• The recent financial report of VIRCO MFG CORPORATION demonstrates a 58.33% 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
• With consistent quarter-to-quarter (Q2Q) revenue growth of 29.62%, VIRCO MFG CORPORATION 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.
• The EPS of VIRCO MFG CORPORATION has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• The Return on Equity (ROE) of VIRCO MFG CORPORATION stands at 31.65%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• VIRCO MFG CORPORATION has exhibited strong Relative Strength(RS) in recent periods, with a current 97.59 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. VIRCO MFG CORPORATION shows promising potential for continued price momentum.
• With a current Debt-to-Equity ratio at 0.17, VIRCO MFG CORPORATION showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• With institutional shareholders at 20.56%, VIRCO MFG CORPORATION 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.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, VIRC scores 8 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, VIRC is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, VIRC did better than 97% of all other stocks.
• VIRC is part of the Commercial Services & Supplies industry. There are 81 other stocks in this industry. VIRC outperforms 97% of them.
• In the last month VIRC has a been trading in the 5.82 - 7.14 range, which is quite wide. It is currently trading near the high of this range.
• VIRC is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so VIRC 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.

Our latest full technical report of VIRC contains the most current technical analsysis.

Zooming in on the fundamentals.

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.

Overall VIRC gets a fundamental rating of 5 out of 10. We evaluated VIRC against 81 industry peers in the Commercial Services & Supplies industry. While VIRC is still in line with the averages on profitability rating, there are concerns on its financial health. An interesting combination arises when we look at growth and value: VIRC is growing strongly while it also seems undervalued.

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

Our CANSLIM screen will find you more ideas suited for growth investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.