Is NASDAQ:SMCI suited 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.

What matters for canslim investors.

• The earnings per share (EPS) of SUPER MICRO COMPUTER INC have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 71.47% increase. This reflects the company's ability to improve its profitability over time.
• The q2q revenue growth of 103.0% of SUPER MICRO COMPUTER INC highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• The 3-year EPS growth of SUPER MICRO COMPUTER INC (63.99%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• SUPER MICRO COMPUTER INC exhibits a strong Return on Equity (ROE) of 23.8%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• The Relative Strength (RS) of SUPER MICRO COMPUTER INC has consistently been strong, with a current 99.83 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. SUPER MICRO COMPUTER INC demonstrates promising potential for sustained price momentum.
• With a Debt-to-Equity ratio at 0.03, SUPER MICRO COMPUTER INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• With 62.64% of the total shares held by institutional investors, SUPER MICRO COMPUTER INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Insights from Technical Analysis

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

Overall SMCI gets a technical rating of 9 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• 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.
• Looking at the yearly performance, SMCI did better than 99% of all other stocks. On top of that, SMCI also shows a nice and consistent pattern of rising prices.
• SMCI is one of the better performing stocks in the Technology Hardware, Storage & Peripherals industry, it outperforms 93% of 32 stocks in the same industry.
• SMCI is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so SMCI is performing more or less in line with the market.
• In the last month SMCI has a been trading in the 855.00 - 1106.11 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of SMCI

How does the complete fundamental picture look for NASDAQ:SMCI?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall SMCI gets a fundamental rating of 6 out of 10. We evaluated SMCI against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. SMCI has an excellent profitability rating, but there are some minor concerns on its financial health. SMCI is growing strongly while it is still valued neutral. This is a good combination! These ratings would make SMCI suitable for growth investing!

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.