Why NASDAQ:NVDA Is a Promising High-Growth Stock in the Midst of Consolidation.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether NVIDIA CORP (NASDAQ:NVDA) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but NVIDIA CORP has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Exploring NASDAQ:NVDA's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:NVDA has achieved a 9 out of 10:

• The Earnings Per Share has grown by an impressive 289.49% over the past year.
• The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
• Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 125.85%.
• The Revenue has been growing by 39.06% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 21.87% on average over the next years. This is a very strong growth
• Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 21.23% on average per year.

Health Analysis for NASDAQ:NVDA

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

• An Altman-Z score of 60.54 indicates that NVDA is not in any danger for bankruptcy at the moment.
• NVDA has a Altman-Z score of 60.54. This is amongst the best in the industry. NVDA outperforms 98.11% of its industry peers.
• NVDA has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.36, NVDA belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
• A Debt/Equity ratio of 0.20 indicates that NVDA is not too dependend on debt financing.
• A Current Ratio of 4.17 indicates that NVDA has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 4.17, NVDA is in the better half of the industry, outperforming 67.92% of the companies in the same industry.
• NVDA has a Quick Ratio of 3.67. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
• NVDA's Quick ratio of 3.67 is fine compared to the rest of the industry. NVDA outperforms 69.81% of its industry peers.

Analyzing Profitability Metrics

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 NASDAQ:NVDA, the assigned 10 is noteworthy for profitability:

• NVDA's Return On Assets of 45.28% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
• NVDA's Return On Equity of 69.24% is amongst the best of the industry. NVDA outperforms 98.11% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 52.66%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 11.44%.
• 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.
• The Profit Margin of NVDA (48.85%) is better than 98.11% of its industry peers.
• NVDA's Profit Margin has improved in the last couple of years.
• The Operating Margin of NVDA (54.12%) is better than 99.06% of its industry peers.
• In the last couple of years the Operating Margin of NVDA has grown nicely.
• 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

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:NVDA has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, NVDA also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 860.00, 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.

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

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

Disclaimer

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.