Is NASDAQ:NVDA on the Verge of a Major Breakout as a Strong Growth Stock?

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

Growth Assessment of NASDAQ:NVDA

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:NVDA, the assigned 9 reflects its growth potential:

• NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 289.49%, which is quite impressive.
• The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
• NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 125.85%.
• NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.06% yearly.
• NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.87% yearly.
• The Revenue is expected to grow by 21.23% on average over the next years. This is a very strong growth

Health Assessment of NASDAQ:NVDA

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. NASDAQ:NVDA has earned a 8 out of 10:

• An Altman-Z score of 66.00 indicates that NVDA is not in any danger for bankruptcy at the moment.
• The Altman-Z score of NVDA (66.00) is better than 98.11% of its industry peers.
• The Debt to FCF ratio of NVDA is 0.36, which is an excellent value as it means it would take NVDA, only 0.36 years of fcf income to pay off all of its debts.
• NVDA's Debt to FCF ratio of 0.36 is amongst the best of the industry. NVDA outperforms 80.19% of its industry peers.
• NVDA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
• NVDA has a Current Ratio of 4.17. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of NVDA (4.17) is better than 67.92% of its industry peers.
• A Quick Ratio of 3.67 indicates that NVDA has no problem at all paying its short term obligations.
• The Quick ratio of NVDA (3.67) is better than 69.81% of its industry peers.

Exploring NASDAQ:NVDA's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NVDA scores a 10 out of 10:

• The Return On Assets of NVDA (45.28%) is better than 100.00% of its industry peers.
• NVDA has a Return On Equity of 69.24%. This is amongst the best in the industry. NVDA outperforms 98.11% of its industry peers.
• NVDA has a Return On Invested Capital of 52.66%. This is amongst the best in the industry. NVDA outperforms 100.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 11.69%.
• The last Return On Invested Capital (52.66%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 48.85%, NVDA belongs to the top of the industry, outperforming 98.11% of the companies in the same industry.
• NVDA's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 54.12%, NVDA belongs to the best of the industry, outperforming 99.06% of the companies in the same industry.
• NVDA's Operating Margin has improved in the last couple of years.
• NVDA has a Gross Margin of 72.72%. This is amongst the best in the industry. NVDA outperforms 92.45% of its industry peers.
• In the last couple of years the Gross Margin of NVDA has grown nicely.

How does the Setup look for NASDAQ:NVDA

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:NVDA scores a 7 out of 10:

NVDA has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. We notice that large players showed an interest for NVDA in the last couple of days, which is a good sign.

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

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

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

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.