NVIDIA CORP (NASDAQ:NVDA) Fits the CAN SLIM Strategy with Strong Growth and Market Leadership

The CAN SLIM investing strategy, created by William O'Neil, merges fundamental and technical analysis to spot high-growth stocks with solid momentum. This approach targets firms showing fast earnings growth, strong sales increases, and backing from big investors, while also highlighting market leadership and good supply-demand balance. By picking stocks that fit these strict rules, investors try to achieve high returns in rising markets.

NVIDIA CORP (NASDAQ:NVDA) stands out as a strong pick for CAN SLIM investors due to its solid financials, technical performance, and fit with the strategy's main ideas.

Why NVIDIA Matches the CAN SLIM Rules

C – Current Big or Fast Quarterly Earnings and Sales Growth

• NVIDIA's quarterly EPS growth (Q2Q) is 56.86%, much higher than the CAN SLIM minimum of 20%.
• Revenue growth (Q2Q) is 69.18%, far above the 25% target.
• The company shows steady earnings growth, a key trait for lasting growth stocks.

A – Yearly Earnings Growth

• NVIDIA has an outstanding 3-year EPS CAGR of 88.81%, well beyond the 25% mark.
• Its Return on Equity (ROE) of 91.57% shows high profitability and smart use of capital, much better than the 10% minimum.

N – New Products, Leadership, or Market Highs

• NVIDIA stays ahead in AI, data center tech, and self-driving systems, fields seeing fast growth.
• The stock is close to its 52-week peak, a technical trait liked by CAN SLIM investors as it shows strong market approval.

S – Supply and Demand Balance

• NVIDIA keeps a low debt-to-equity ratio of 0.10, pointing to a stable financial position.
• The stock enjoys high liquidity, with about 189 million shares traded daily, making it easy to buy or sell.

L – Market Leadership

• With a Relative Strength (CRS) of 93.92, NVIDIA beats nearly 94% of the market, a sign of a top stock.
• It ranks high in the Semiconductors & Semiconductor Equipment sector, doing better than 89% of rivals.

I – Big Investor Support

• Big investors own 67.35%, in the sweet spot (not too high to cap gains, but enough to show their interest).

M – Market Trend

• NVIDIA’s technical picture is positive, with both short and long-term trends up, matching the CAN SLIM rule of investing with the market’s direction.
• The S&P 500’s short-term rise adds to the good setting for growth stocks.

Financial and Technical Performance

NVIDIA’s fundamental analysis shows its high profitability (ROE of 91.57%), fast growth path (3-year EPS CAGR of 88.81%), and sound financial health (low debt, high liquidity). The stock’s price, though high, makes sense given its growth potential and sector lead.

From a technical view, NVIDIA scores a full 10/10, backed by positive trends in all timeframes. The stock is near its 52-week high, confirming its leader status. Still, the current setup hints at waiting for a pullback before buying, as recent ups and downs may bring short-term pressure.

Final Thoughts

NVIDIA fits the CAN SLIM method well, mixing fast earnings growth, market leadership, and strong big investor support. While its price needs a close look, the firm’s lead in AI and high-power computing makes it a long-term growth option.

For investors hunting for similar high-growth picks, check out more CAN SLIM-friendly stocks with our predefined screener.

Disclaimer: This article is for information only and not investment advice. Always do your own research or talk to a financial expert before investing.