Should you consider NASDAQ:QNST for high growth investing?

A possible breakout setup was detected on QUINSTREET INC (NASDAQ:QNST) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:QNST.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 9 out of 10 to QNST. Both in the recent history as in the last year, QNST has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, QNST did better than 87% of all other stocks. On top of that, QNST also shows a nice and consistent pattern of rising prices.
• QNST is one of the better performing stocks in the Interactive Media & Services industry, it outperforms 75% of 71 stocks in the same industry.
• QNST is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so QNST is lagging the market slightly.
• In the last month QNST has a been trading in the 21.49 - 25.50 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Why is NASDAQ:QNST a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:QNST is 7:

Besides having an excellent technical rating, QNST also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 22.77, a Stop Loss order could be placed below this zone.

Why NASDAQ:QNST may be interesting for high growth investors.

• The earnings per share (EPS) of QUINSTREET INC have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 600.0% increase. This reflects the company's ability to improve its profitability over time.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 130.0%, QUINSTREET INC showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• QUINSTREET INC has achieved significant 1-year revenue growth of 68.99%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• The average next Quarter EPS Estimate for QUINSTREET INC has experienced a 11.72% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• In the most recent financial report, QUINSTREET INC reported a 600.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• QUINSTREET INC shows accelerating EPS growth: when comparing the current Q2Q growth of 600.0% to the previous year Q2Q growth of -100.0%, we see the growth rate improving.
• QUINSTREET INC has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• The free cash flow (FCF) of QUINSTREET INC has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• QUINSTREET INC exhibits a favorable Debt-to-Equity ratio at 0.0. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• QUINSTREET INC has exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• QUINSTREET INC has achieved an impressive Relative Strength (RS) rating of 87.16, showcasing its ability to outperform the broader market. This strong performance positions QUINSTREET INC as an attractive stock for potential price appreciation.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

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.