NOVA LTD (NASDAQ:NVMI) - A Strong Contender in Growth and Momentum Investing

NOVA LTD (NASDAQ:NVMI) has emerged as a compelling candidate for investors following the Minervini Trend Template and high-growth momentum strategies. The semiconductor metrology solutions provider demonstrates strong technical and fundamental characteristics that align with these methodologies.

Why NVMI Fits the Minervini Trend Template

Mark Minervini’s strategy emphasizes stocks in strong uptrends with clear technical strength. NVMI meets these criteria:

• Price Above Key Moving Averages: The stock trades at $284.96, well above its 50-day ($215.52), 150-day ($213.91), and 200-day ($209.07) moving averages, confirming a bullish trend.
• Upward-Sloping Averages: The 50-day MA is above both the 150-day and 200-day MAs, while the 150-day MA is above the 200-day MA—a key Minervini requirement.
• Strong Relative Strength: With a ChartMill Relative Strength score of 90.44, NVMI outperforms 90% of stocks, particularly within the competitive Semiconductors & Semiconductor Equipment sector.
• Near 52-Week High: The stock is trading within 1.7% of its 52-week high ($289.90), indicating sustained momentum.

High Growth Momentum Fundamentals

NVMI’s financial performance supports its growth potential:

• Earnings Growth: EPS grew 48.2% year-over-year (TTM), with recent quarterly growth accelerating to 56.8%.
• Revenue Expansion: Sales increased 50.5% in the latest quarter, with full-year revenue up 29.8%.
• Profitability Improvement: Profit margins expanded to 30.4% in the most recent quarter, up from 25.9% in the prior quarter.
• Analyst Confidence: EPS estimates for next year have been revised upward by 2.6% over the past three months, signaling optimism.

Technical Outlook

NVMI’s technical rating of 9/10 reflects its strong trend across short and long-term timeframes. However, its setup rating of 3 suggests waiting for a consolidation phase before entering, as recent volatility may present a less optimal risk/reward scenario.

Support levels are visible at $199.65 (daily trendline) and $174.37 (weekly trendline), providing downside protection.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.

For a deeper technical analysis, review the full NVMI technical report.

Disclaimer

This is not investment advice. Conduct your own research and consider risk tolerance before making investment decisions.