SMCI: An Undervalued Growth Opportunity with Strong Upside Potential
$Super Micro Computer (SMCI.US)$ SMCI presents a compelling investment case with a remarkable combination of growth and value, now trading at an attractive price of around $32 per share. Key highlights:
• Strong Financial Growth:
• Fiscal year 2023 revenue surged by 53% YoY to $7.1 billion.
• Net income grew 71% YoY, reaching $620 million, underscoring its strong profitability.
• Compelling Valuation Metrics:
• P/E Ratio: SMCI trades at a forward P/E of 10x, significantly below the industry average of 30x.
• Price-to-Sales (P/S) Ratio: At just 0.7, the stock is deeply undervalued compared to peers.
• Nasdaq 100 Removal Has No Fundamental Impact:
The recent removal from the Nasdaq 100 index was solely due to market cap considerations and does not reflect any weakness in the company’s operations or growth prospects.
• Upcoming Earnings as a Catalyst:
• Revenue for the upcoming quarter is expected to exceed $6 billion, with profit growth forecasted at 60%+ YoY.
• Investors anticipate strong results, setting the stage for a potential price surge.
A Rare Buying Opportunity at Current Levels
Trading at approximately $32 per share, SMCI offers investors a chance to enter at an undervalued level. With its solid fundamentals, consistent profitability, and growth in high-performance, energy-efficient server technology, the stock is well-positioned for substantial upside.
Now is the time to capitalize on this opportunity before the market recognizes its true value.
• Strong Financial Growth:
• Fiscal year 2023 revenue surged by 53% YoY to $7.1 billion.
• Net income grew 71% YoY, reaching $620 million, underscoring its strong profitability.
• Compelling Valuation Metrics:
• P/E Ratio: SMCI trades at a forward P/E of 10x, significantly below the industry average of 30x.
• Price-to-Sales (P/S) Ratio: At just 0.7, the stock is deeply undervalued compared to peers.
• Nasdaq 100 Removal Has No Fundamental Impact:
The recent removal from the Nasdaq 100 index was solely due to market cap considerations and does not reflect any weakness in the company’s operations or growth prospects.
• Upcoming Earnings as a Catalyst:
• Revenue for the upcoming quarter is expected to exceed $6 billion, with profit growth forecasted at 60%+ YoY.
• Investors anticipate strong results, setting the stage for a potential price surge.
A Rare Buying Opportunity at Current Levels
Trading at approximately $32 per share, SMCI offers investors a chance to enter at an undervalued level. With its solid fundamentals, consistent profitability, and growth in high-performance, energy-efficient server technology, the stock is well-positioned for substantial upside.
Now is the time to capitalize on this opportunity before the market recognizes its true value.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Money Thrill : fully agree, fundamentals are good but subject to a lot of speculation which increases volatility and therefore creates buying and selling moments. Price target in future is still 50, i guess![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Money Thrill : And prices of $Palantir (PLTR.US)$ (revenue millions not billions) and $MicroStrategy (MSTR.US)$ (revenue millions and down, miss estimates !) are overevaluated. No gains like Supermicro?
101784548 : Ok but the stock will drop to 20. Why buy now when I can buy lower
XSpace OP 101784548 : You can wait to buy until it rises to $50.