CLEARWATER ANALYTICS HDS-A (NYSE:CWAN) was identified by our screener as a strong growth stock exhibiting a favorable technical setup. The company combines solid fundamentals with a potential breakout pattern, making it worth a closer look.
Growth and Fundamentals
- High Growth Rating (9/10): CWAN has demonstrated strong revenue and earnings growth, with past year revenue increasing by 23.21% and earnings per share (EPS) growing by 29.73%. Future revenue is expected to rise by 35.58% annually.
- Healthy Financials (8/10 Health Rating): The company maintains a strong balance sheet, with a low debt-to-equity ratio of 0.04 and excellent liquidity metrics, including a current ratio of 5.09.
- Profitability (6/10): While margins are improving, the operating margin remains modest at 4.09%. However, return on equity (38.45%) and return on assets (33.38%) are well above industry averages.
Technical Setup
- Decent Setup Rating (8/10): CWAN is consolidating within a defined range ($21.79 - $24.63), showing reduced volatility. A breakout above resistance near $23.56 could signal further upside.
- Support and Resistance: Key support sits at $22.04, while resistance levels are found between $23.56 and $24.37. A move above this zone could attract more buyers.
- Volume Activity: The stock has healthy liquidity, with an average daily volume of ~2.93M shares, supporting potential price momentum.
Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental analysis of CWAN and the technical analysis report.
Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.