NYSE:GLOB qualifies as a high growth stock and is consolidating.

Last update: May 24, 2024

In this article we will dive into GLOBANT SA (NYSE:GLOB) as a possible candidate for growth investing. Investors should always do their own research, but we noticed GLOBANT SA showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:GLOB has received a 8 out of 10:

The Earnings Per Share has grown by an nice 15.86% over the past year.
The Earnings Per Share has been growing by 26.96% on average over the past years. This is a very strong growth
Looking at the last year, GLOB shows a quite strong growth in Revenue. The Revenue has grown by 18.54% in the last year.
Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 32.04% on average per year.
Based on estimates for the next years, GLOB will show a very strong growth in Earnings Per Share. The EPS will grow by 22.26% on average per year.
The Revenue is expected to grow by 19.32% on average over the next years. This is quite good.

Evaluating Health: NYSE:GLOB

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:GLOB has earned a 5 out of 10:

An Altman-Z score of 5.93 indicates that GLOB is not in any danger for bankruptcy at the moment.
The Altman-Z score of GLOB (5.93) is better than 78.31% of its industry peers.
GLOB has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
GLOB has a Debt to FCF ratio of 1.45. This is in the better half of the industry: GLOB outperforms 73.49% of its industry peers.
GLOB has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
GLOB has a better Debt to Equity ratio (0.04) than 77.11% of its industry peers.

Evaluating Profitability: NYSE:GLOB

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GLOB, the assigned 5 is a significant indicator of profitability:

The Return On Assets of GLOB (5.80%) is better than 68.67% of its industry peers.
GLOB's Return On Equity of 9.17% is fine compared to the rest of the industry. GLOB outperforms 63.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.16%, GLOB is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
With a decent Profit Margin value of 7.56%, GLOB is doing good in the industry, outperforming 69.88% of the companies in the same industry.
The Operating Margin of GLOB (11.40%) is better than 73.49% of its industry peers.

How do we evaluate the setup for NYSE:GLOB?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:GLOB is 7:

Although the technical rating is bad, GLOB does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 168.39, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of GLOB contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of GLOB

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.