NYSE:CALX: a strong growth stock preparing for the next leg up?.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether CALIX INC (NYSE:CALX) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but CALIX INC has surfaced on our radar for growth with base formation, warranting further examination.

How do we evaluate the Growth for NYSE:CALX?

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CALX boasts a 8 out of 10:

• CALX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.57%, which is quite impressive.
• The Earnings Per Share has been growing by 165.27% on average over the past years. This is a very strong growth
• CALX shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.83%.
• Measured over the past years, CALX shows a quite strong growth in Revenue. The Revenue has been growing by 11.20% on average per year.
• The Earnings Per Share is expected to grow by 22.02% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 15.00% on average over the next years. This is quite good.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Health Assessment of NYSE:CALX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CALX has earned a 8 out of 10:

• CALX has an Altman-Z score of 10.29. This indicates that CALX is financially healthy and has little risk of bankruptcy at the moment.
• CALX has a better Altman-Z score (10.29) than 96.67% of its industry peers.
• CALX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• CALX has a Current Ratio of 3.69. This indicates that CALX is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of CALX (3.69) is better than 81.67% of its industry peers.
• A Quick Ratio of 2.74 indicates that CALX has no problem at all paying its short term obligations.
• CALX has a better Quick ratio (2.74) than 81.67% of its industry peers.

Evaluating Profitability: NYSE:CALX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CALX, the assigned 5 is noteworthy for profitability:

• The Return On Assets of CALX (4.71%) is better than 73.33% of its industry peers.
• CALX has a better Return On Equity (5.98%) than 65.00% of its industry peers.
• CALX's Return On Invested Capital of 5.34% is fine compared to the rest of the industry. CALX outperforms 63.33% of its industry peers.
• CALX has a Profit Margin of 4.47%. This is in the better half of the industry: CALX outperforms 65.00% of its industry peers.
• CALX's Operating Margin of 5.53% is fine compared to the rest of the industry. CALX outperforms 61.67% of its industry peers.
• CALX's Gross Margin of 51.21% is fine compared to the rest of the industry. CALX outperforms 73.33% of its industry peers.
• CALX's Gross Margin has improved in the last couple of years.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:CALX exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

CALX has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 45.15, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of CALX for a complete fundamental analysis.

Check the latest full technical report of CALX for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.