PENUMBRA INC (NYSE:PEN) – A Strong Growth Stock with Technical Breakout Potential

PENUMBRA INC (NYSE:PEN) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a promising chart pattern, making it worth a closer look for investors seeking growth opportunities.

Strong Growth Fundamentals

PENUMBRA INC operates in the medical device sector, focusing on innovative thrombectomy and vascular access technologies. The company’s fundamentals reflect strong growth potential:

• Revenue Growth: Revenue increased by 13.18% over the past year, with a 5-year average annual growth of 16.89%.
• Earnings Growth: EPS grew 44.93% year-over-year, with a 5-year average annual increase of 24.23%.
• Future Expectations: Analysts project continued EPS growth of 24.91% annually.

The company’s financial health is also strong, with a ChartMill Health Rating of 8/10, supported by a low debt-to-equity ratio of 0.02 and excellent liquidity metrics.

Technical Setup Suggests Upside Potential

The technical analysis highlights a bullish pattern:

• Trend Strength: The long-term trend is positive, while the short-term trend is neutral, suggesting potential for continuation.
• Bull Flag Formation: The stock is currently consolidating after a strong upward move, which could lead to another breakout.
• Support Levels: Key support zones are found near $280.74 and $269.62, providing downside protection.
• Resistance Breakout: A move above $303.77 could signal further upside.

Volume has increased recently, reinforcing the bullish momentum.

Why This Combination Matters

Growth stocks with strong technical setups often present attractive risk-reward opportunities. PENUMBRA’s fundamentals suggest sustained expansion, while the chart indicates a possible continuation of its upward trend.

For a deeper dive, review the full fundamental analysis and technical report.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.