Should you consider NASDAQ:SMCI for growth investing?

In this article we will dive into SUPER MICRO COMPUTER INC (NASDAQ:SMCI) as a possible candidate for growth investing. Investors should always do their own research, but we noticed SUPER MICRO COMPUTER INC showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Why NASDAQ:SMCI may be interesting for canslim investors.

• The recent financial report of SUPER MICRO COMPUTER INC demonstrates a 33.97% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• The q2q revenue growth of 33.59% of SUPER MICRO COMPUTER INC highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• SUPER MICRO COMPUTER INC has achieved 63.99% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• With a favorable Return on Equity (ROE) of 32.45%, SUPER MICRO COMPUTER INC demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• SUPER MICRO COMPUTER INC has achieved an impressive Relative Strength (RS) rating of 99.15, showcasing its ability to outperform the broader market. This strong performance positions SUPER MICRO COMPUTER INC as an attractive stock for potential price appreciation.
• SUPER MICRO COMPUTER INC maintains a healthy Debt-to-Equity ratio of 0.06. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• SUPER MICRO COMPUTER INC exhibits a favorable ownership structure, with an institutional shareholder ownership of 65.83%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 5 out of 10 to SMCI. SMCI was one of the better performers in the overall market, it is still ok in the medium term time frame, but very the very recent evolution is negative.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that SMCI is one of the better performing stocks in the market, outperforming 99% of all stocks. We also observe that the gains produced by SMCI over the past year are nicely spread over this period.
• SMCI is one of the better performing stocks in the Technology Hardware, Storage & Peripherals industry, it outperforms 93% of 34 stocks in the same industry.
• In the last month SMCI has a been trading in the 226.59 - 300.56 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• SMCI is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so SMCI is lagging the market slightly.

Our latest full technical report of SMCI contains the most current technical analsysis.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to SMCI. SMCI was compared to 34 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the health and profitability get an excellent rating, making SMCI a very profitable company, without any liquidiy or solvency issues. SMCI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make SMCI a good candidate for growth and quality investing.

Check the latest full fundamental report of SMCI for a complete fundamental analysis.

Our CANSLIM screen will find you more ideas suited for growth investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.