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 fundamentals with a promising chart pattern, making it worth a closer look for investors seeking growth opportunities.

Strong Growth Fundamentals

• Revenue & Earnings Growth: PEN has demonstrated consistent growth, with revenue increasing by 13.18% over the past year and earnings per share (EPS) surging by 44.93%. Analysts expect EPS to grow by 25.44% annually in the coming years.
• Financial Health: The company scores an 8/10 in financial health, with a strong balance sheet, low debt, and high liquidity. Its Altman-Z score of 17.50 indicates minimal bankruptcy risk.
• Profitability: While profitability margins have seen some pressure, PEN still outperforms most peers in operating margin (11.92%) and return on invested capital (6.92%).

Technical Setup

• Consolidation & Breakout Potential: PEN is currently consolidating near a key support zone between $253.30 and $256.51. A rebound from this level could signal a bullish continuation.
• Relative Strength: The stock has outperformed 84% of the market over the past year and remains in a long-term uptrend despite recent short-term weakness.
• Setup Rating: With an 8/10 setup rating, the stock presents a potential entry point for traders watching for a breakout above resistance near $260.

For a deeper dive into PEN’s fundamentals, check the full fundamental report. The technical analysis report provides additional insights into key support and resistance levels.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics and is updated daily.

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.