Neuberger Berman Next Generation Connectivity Fund Inc (NYSE:NBXG) – A CANSLIM Candidate with Strong Growth and Momentum

Neuberger Berman Next Generation Connectivity Fund Inc (NYSE:NBXG) has been flagged by our CANSLIM stock screener as a potential candidate for growth-focused investors. The fund, which focuses on next-generation mobile network connectivity and technology, meets several key criteria of the CANSLIM strategy, including strong earnings growth, high relative strength, and solid fundamentals. Below, we examine why NBXG stands out.

Why NBXG Fits the CANSLIM Strategy

• Earnings Growth (C & A Criteria): NBXG reported a staggering 240.4% year-over-year EPS growth in its most recent quarter, far exceeding the CANSLIM minimum threshold of 20%. Over the past three years, EPS has grown at an annualized rate of 41.9%, demonstrating sustained profitability.
• Revenue Growth: Quarterly sales increased by 26.4%, reinforcing the company’s growth trajectory.
• Return on Equity (ROE): With an ROE of 31.5%, NBXG outperforms the CANSLIM benchmark of 10%, indicating efficient capital utilization.
• Relative Strength (L Criteria): The stock has a relative strength of 76.9, meaning it outperforms nearly 77% of the market—a key trait for CANSLIM leaders.
• Institutional Sponsorship (I Criteria): Institutional ownership stands at 39.5%, below the 85% threshold, suggesting room for further institutional accumulation.
• Debt-Free Balance Sheet: NBXG carries no debt, a positive for risk-averse investors.

Technical and Fundamental Snapshot

• Technical Rating (8/10): The stock is in a strong uptrend, trading near 52-week highs, with both short- and long-term trends positive.
• Fundamental Rating (3/10): While growth metrics are impressive, profitability and valuation scores are mixed. The stock trades at a low P/E of 3.8, but liquidity concerns exist due to a weak current ratio.

For a deeper look, review the full technical analysis and fundamental report.

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Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.