NVE's 15-min chart shows RSI overbought, KDJ death cross.

According to the 15-minute chart for NVE, the RSI has reached an overbought level, and the KDJ has triggered a death cross at 14:00 on April 29, 2025. This indicates that the stock price has risen too quickly and exceeds the fundamental support, suggesting that the momentum is shifting towards the downside and there is potential for further decline.

NVE Corporation's stock (NASDAQ: NVEC) has been under scrutiny due to a recent drop in stock price and concerns about its financial health. However, a closer look at the company's fundamentals reveals a more nuanced picture. According to a recent analysis by Simply Wall St [1], NVE's Return on Equity (ROE) stands at 24%, which is significantly higher than the industry average of 12%. This high ROE indicates that the company is efficiently utilizing its capital, contributing to its modest earnings growth of 8.9% over the past five years.

The technical analysis of NVE's stock also provides insight into its potential future performance. As of 14:00 on April 29, 2025, the Relative Strength Index (RSI) on the 15-minute chart reached an overbought level, suggesting that the stock price has risen too quickly and may be due for a correction. Additionally, the KDJ indicator triggered a death cross, indicating a potential shift in momentum towards the downside. These technical indicators signal that the stock price has exceeded its fundamental support, and there is a potential for further decline.

Despite the positive fundamentals, NVE's high payout ratio of 113% over the past three years is a cause for concern. This ratio suggests that the company is paying out more in dividends than it earns, which could strain its growth potential if the company cannot maintain its current earnings momentum.

In conclusion, while NVE's high ROE and earnings growth suggest a strong fundamental position, the recent technical indicators signal a potential downside risk. Investors should closely monitor the company's financial health and the stock's price movements to make informed investment decisions.

References:
[1] https://finance.yahoo.com/news/nve-corporations-nasdaq-nvec-stock-172525722.html