Workflow
Spintronic technology
icon
Search documents
Why NVE Corporation Popped Today
Yahoo Finance· 2026-01-22 15:57
Core Insights - NVE Corporation's stock surged 14.7% after reporting fiscal Q3 2026 earnings, indicating positive market reaction despite lack of analyst coverage [1][3] Financial Performance - NVE reported $5.8 million in sales for the quarter, reflecting a 23% year-over-year increase [3] - Earnings per share grew 11% to $0.70, reversing a trend of declining sales and earnings in the first half of the fiscal year [3] - The company announced a quarterly dividend of $1, exceeding its earnings for the quarter [3] Valuation and Growth Potential - NVE stock is priced at 25 times earnings, which may not seem expensive if sales and profit margins were expanding, but earnings growth is only 11% for the quarter and remains negative for the fiscal year to date [6] - Free cash flow was strong, covering about 87% of reported net profit, and the company has substantial cash reserves [7] - The spintronic technology developed by NVE is noted as interesting, suggesting potential for future growth [7] Market Position - NVE Corporation remains largely unnoticed on Wall Street, despite its strong sales growth and profitability [5] - The company is considered worth monitoring due to its unique technology and lack of analyst attention [7]