Neuberger Berman Next Generation Connectivity Fund Inc (NYSE:NBXG) Aligns with CAN SLIM Investment Strategy for High-Growth Potential

The CAN SLIM investment strategy, created by William O'Neil, blends fundamental and technical analysis to spot high-growth stocks with strong momentum. The method looks for companies showing fast earnings and sales growth, leading positions in their sectors, and support from big investors, all while keeping an eye on market trends. By filtering for these traits, investors try to find stocks likely to rise sharply in bullish markets while limiting risk with strict stop-loss rules.

Neuberger Berman Next Generation Connectivity Fund Inc (NYSE:NBXG) stands out as a potential fit for key CAN SLIM principles.

How NBXG Fits CAN SLIM Criteria

C – Current Quarterly Earnings & Sales Growth

• EPS Growth (Q2Q): 240.43%
• Revenue Growth (Q2Q): 26.39%
  CAN SLIM favors companies with fast-growing quarterly earnings and sales. NBXG’s huge EPS growth and steady revenue increase point to strong performance, a key factor for growth-focused investors.

A – Annual Earnings Growth

• 3-Year EPS CAGR: 41.88%
• Return on Equity (ROE): 31.52%
  The strategy requires steady yearly earnings growth, preferably over 25%. NBXG’s strong 3-year EPS growth and high ROE show efficient use of capital and lasting profitability.

N – New Products, Management, or Highs

NBXG centers on next-gen mobile connectivity (5G and beyond), placing it in a fast-growing tech shift. While subjective, this matches CAN SLIM’s focus on companies pushing industry change.

S – Supply & Demand

• Debt/Equity Ratio: 0.0
• Institutional Ownership: 39.49%
  Low debt improves financial flexibility, while moderate institutional ownership hints at potential for more big investor interest, which could boost demand.

L – Market Leadership

• Relative Strength (CRS): 79.85
  Stocks beating at least 75% of the market are seen as leaders. NBXG’s high relative strength shows investor trust and price momentum.

I – Institutional Sponsorship

While institutional ownership is under the 85% mark, its upward trend may indicate growing interest from major investors, a good sign for future liquidity and price stability.

M – Market Direction

With the S&P 500 in a positive long- and short-term trend, the overall market setting supports CAN SLIM’s bullish outlook, easing challenges for high-growth stocks like NBXG.

Technical & Fundamental Snapshot

• Technical Rating: 10/10 – The stock displays strong short- and long-term uptrends, trading close to 52-week highs. (Full TA Report)
• Fundamental Rating: 3/10 – While growth numbers are impressive, weaker profitability and liquidity metrics lower the overall score. (Full FA Report)

Conclusion

NBXG shows several CAN SLIM traits, like fast earnings growth, sector innovation, and strong relative strength. Still, investors should consider its weaker liquidity metrics and match it with their risk tolerance. As always, sticking to stop-loss rules is vital for managing risk.

For more CAN SLIM-aligned stock ideas, check out our pre-configured screener.

Disclaimer: This analysis is not investment advice. Do your own research or talk to a financial expert before making investment choices.