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

NVIDIA CORP (NASDAQ:NVDA) stands out as a compelling choice for investors following the CANSLIM strategy. The company’s strong fundamentals, accelerating growth, and technical strength align well with the criteria outlined by William O’Neil. Below, we examine why NVDA fits the CANSLIM approach.

Key CANSLIM Criteria and How NVDA Fits

• C – Current Earnings & Sales Growth:

  • Quarterly EPS growth: 56.9% (vs. same quarter last year)
  • Quarterly revenue growth: 69.2%
    Both figures exceed CANSLIM’s minimum thresholds (20% for EPS, 25% for sales), indicating strong momentum.

• A – Annual Earnings Growth:

  • 3-year EPS CAGR: 88.8%, well above the 25-50% range suggested by O’Neil.
  • Return on Equity (ROE): 91.6%, reflecting efficient capital use.

• N – New Products & Market Leadership:
  NVIDIA dominates in AI, data center acceleration, and gaming GPUs—key growth areas with expanding demand.

• S – Supply & Demand:

  • Debt/Equity ratio: 0.10, showing minimal financial leverage.
  • High trading liquidity (avg. daily volume: ~203M shares) supports price stability.

• L – Market Leadership:

  • Relative Strength (CRS): 89.2, placing NVDA in the top 11% of performers.

• I – Institutional Sponsorship:

  • Institutional ownership: 67.4%, within the ideal range (not overly saturated).

• M – Market Direction:
  Both NVDA and the S&P 500 are in positive long- and short-term trends, supporting a favorable entry environment.

Technical & Fundamental Highlights

• Technical Rating: 9/10, with strong trends and recent 52-week highs.
• Fundamental Rating: 8/10, driven by exceptional profitability, growth, and financial health.

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

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Disclaimer

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