NVIDIA CORP (NASDAQ:NVDA) – A Strong Contender for CANSLIM Investors

NVIDIA CORP (NASDAQ:NVDA) stands out as a compelling candidate for investors following the CANSLIM strategy. The company’s strong earnings growth, leadership in accelerated computing, and solid technical performance align well with the criteria outlined by William O’Neil. Below, we examine why NVDA fits the CANSLIM framework.

Key CANSLIM Criteria and How NVIDIA Meets Them

• C – Current Earnings & Sales Growth: NVIDIA reported a 32.4% year-over-year EPS growth and a 69.2% revenue increase in the latest quarter, well above the CANSLIM minimum thresholds of 20% and 25%, respectively.
• A – Annual Earnings Growth: The company’s three-year EPS growth rate is an impressive 88.8%, far exceeding the 25% benchmark.
• N – New Products & Market Leadership: NVIDIA is a leader in AI, data center solutions, and gaming GPUs, with continuous innovation in areas like autonomous vehicles and robotics.
• S – Supply & Demand: With a debt-to-equity ratio of just 0.10, NVIDIA maintains a strong balance sheet. Trading volume remains high, averaging 269.7 million shares daily.
• L – Market Leadership: NVIDIA’s relative strength score of 87.8 places it in the top 13% of all stocks, confirming its leadership status.
• I – Institutional Sponsorship: Institutional ownership stands at 67%, indicating strong interest without being overly concentrated.
• M – Market Direction: Both the short-term and long-term trends for the S&P 500 are positive, aligning with CANSLIM’s preference for bullish market conditions.

Technical and Fundamental Strength

NVIDIA’s technical rating is a perfect 10, reflecting strong momentum across all time frames. The stock is trading near its 52-week high, with clear support levels and upward-moving averages.

Fundamentally, NVIDIA scores an 8 out of 10, with exceptional profitability (ROE of 91.6%) and healthy financials. While its P/E ratio is elevated, growth prospects justify the valuation.

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

Our CANSLIM High Growth screener lists more stocks that fit this strategy and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.