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• Nova is trading at new all-time highs and shares are up nearly 78% over the past year.
• NVMI maintains a 100% “Buy” opinion from Barchart.
• Analysts project solid revenue and earnings growth ahead.
• However, some on the Street warn that a high valuation is reason for caution. 

Today’s Featured Stock

Valued at $13.6 billion, Nova (NVMI) is a provider of metrology solutions for advanced process control used in semiconductor manufacturing. The company’s product portfolio combines hardware and cutting-edge software.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. NVMI checks those boxes. Since the Trend Seeker signaled a new “Buy” on Jan. 2, the stock has gained 28.83%.

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Source

Barchart Technical Indicators for Nova

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

NVMI scored a new all-time high of $475.00 on Jan. 22.

• NVMI has a Weighted Alpha of +111.14.
• Nova has a 100% “Buy” opinion from Barchart.
• The stock gained 77.71% over the past year.
• NVMI has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $449.50 with a 50-day moving average of $343.98.
• Nova made 15 new highs and gained 34% in the last month.
• Relative Strength Index (RSI) is at 73.67.
• There’s a technical support level around $454.21.

Don’t Forget the Fundamentals

• $13.61 billion market capitalization.
• 58.91x trailing price-earnings ratio.
• Revenue is projected to increase 30.69% this year and another 11.86% next year.
• Earnings are estimated to increase 29.86% this year and an additional 12.11% next year.

Analyst and Investor Sentiment on Nova

• Wall Street analysts tracked by Barchart gave 6 “Strong Buy,” 1 “Moderate Buy” and 2 “Hold” opinions on the stock with price targets between $335 and $500.
• Value Line ranks the stock “Average” with price targets between $240 and $672.
• CFRA’s MarketScope Advisor rates the stock a “Hold.”
• Morningstar thinks with the stock’s recent runup, it’s 33% overvalued.
• 403 investors following the stock on Motley Fool predict the stock will beat the market while 33 think it won’t.
• 7,380 investors are monitoring the stock on Seeking Alpha, which rates the stock a “Hold.”
• Short interest is a reasonable 4.80% of the float with 6.11 days to cover.

The Bottom Line on Nova 

Analysts have robust projections for revenue and earnings increases, but Nova’s high valuation has made some cautious about future price increases.

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