SUPER MICRO COMPUTER INC (NASDAQ:SMCI) - A Strong Growth Stock with Technical Breakout Potential

SUPER MICRO COMPUTER INC (NASDAQ:SMCI) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a promising chart pattern, making it worth a closer look.

Fundamental Strengths

• Growth: SMCI has demonstrated strong revenue growth, increasing by 82.49% over the past year, with a five-year average annual growth rate of 33.76%. Earnings per share (EPS) have also grown at an impressive 66.56% annually over the same period.
• Profitability: The company scores well on profitability with a Return on Equity (ROE) of 18.04%, outperforming 87.5% of its industry peers. Its Profit Margin (5.34%) is also above average for the sector.
• Financial Health: SMCI maintains a solid balance sheet with a Current Ratio of 6.66 and a Quick Ratio of 3.95, indicating strong liquidity. However, its Debt to Free Cash Flow ratio (70.05) suggests some caution regarding leverage.

Technical Setup

• Trend: Both short-term and long-term trends are positive, reinforcing bullish momentum.
• Support & Resistance: The stock has key support near $40.01, while resistance sits between $41.77 and $42.95. A breakout above this zone could signal further upside.
• Volume: Despite recent lower trading activity, SMCI maintains an average daily volume of 4.76 million shares, ensuring liquidity.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics and is updated daily.

For a deeper dive, review the full fundamental report for SMCI and the technical analysis report.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.