For investors aiming for major capital gains, a mixed method of fundamental and technical analysis can be an effective plan. The objective is to find companies with sound basic business growth, firm and increasing earnings, stable finances, and good profit levels, that are also near a possible price move higher based on market behavior. This technique tries to match a company's internal financial strength with positive market conditions, looking for situations where solid basics are being noted and followed by the wider market. One stock now displaying this pattern is SHARKNINJA INC (NYSE:SN).
Fundamental Strength: The Engine for Growth
At its center, a lasting growth narrative needs firm financial support. ChartMill's fundamental review gives an organized look over five important sections, and SharkNinja displays clear force in a number. The company's total fundamental score of 6 out of 10 is held by high scores in Profitability (8/10) and good grades in Financial Health (7/10) and Growth (7/10).
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Profitability Leader: SharkNinja's profit measures are a main feature, doing better than most of its competitors in the Household Durables field.
- Return on Equity (ROE): 23.87%, better than 95% of industry competitors.
- Return on Assets (ROA): 11.56%, better than 88.5% of industry competitors.
- Profit Margin: A good 9.45%, which is near the top in its sector.
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Steady and Quickening Growth: For a growth stock, the path of earnings and sales is critical. SharkNinja shows a strong history and good outlook.
- Past Results: Revenue increased 18.87% over the last year, with a 3-year average yearly growth of 14.05%. Earnings Per Share (EPS) increased a notable 20.92% last year.
- Future Outlook: Experts predict ongoing good growth, with EPS expected to increase at an average yearly rate of 15.81% and revenue at 10.48% in the next years. It is important that the EPS growth rate is forecast to speed up relative to its past rate.
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Financial Health Offers Stability: A good growth company must also be financially sound. SharkNinja's health score shows a stable balance sheet with an Altman-Z score pointing to low bankruptcy chance and an acceptable debt situation, with a Debt-to-Equity ratio of 0.29. This financial soundness gives the base to support future new ideas and increase without high risk.
You can examine the complete points of this review in SharkNinja's fundamental report.
Technical Setup: The Market's Vote of Confidence
While basics explain the company's engine, technical analysis judges the market's present mood and price movement. A good technical configuration indicates that the market is starting to note and value the basic strength, often before a continued rise. ChartMill's technical analysis for SN shows a positive image, giving it a high score of 8 out of 10 with a good Setup Rating of 7.
- Positive Trend Agreement: Both the near-term and long-term trends for SN are now positive. This agreement is a strong sign, showing continued buyer interest across different time frames.
- Good Relative Results: The stock has done better than 72% of the market over the past year and 85% of its industry competitors, showing clear relative force, a trait of leading growth stocks.
- Tight Trading Near Highs: The stock is now trading near the top of its one-month band, having held steady after a strong rise. The technical analysis states that "prices have been consolidating lately" and finds "very little resistance above the current price," indicating a possible price rise is likely.
- Supporting Volume Sign: A recent "Pocket Pivot" sign, where price rises on higher volume than the worst down volume of the previous ten days, has been seen. This is often seen as a mark of buying by big investors.
The technical analysis proposes the stock is in a place where a rise to new highs could be near, backed by its strong trend and market-beating results. For a full view of the support, resistance points, and trade setup points, see the complete technical analysis report.
Valuation and Considerations
The main note within SharkNinja's profile is in its valuation. With a Price-to-Earnings (P/E) ratio of 23.81, the stock is not low cost, trading above its industry average. This is common for companies showing higher-than-average growth rates and high profit levels. The valuation score of 3/10 shows this high price. However, the analysis states that the stock's high profitability and expected earnings growth may support the higher multiple. For growth investors, paying more for a tested, profitable growth engine is often part of the plan, though it does raise the need for the growth path to be kept.
Conclusion
SharkNinja shows a situation where a sound basic growth story, marked by high profitability, quickening earnings, and financial health, is meeting a positive technical position. The company has shown its skill to increase sales and earnings notably, and the market has answered by moving the stock into a strong upward trend with marks of holding steady near highs. This mix is exactly what the "Strong Growth Stocks with Good Technical Setup" screening method aims to find: basically solid companies where positive price movement indicates the growth story is being accepted by the market.
Interested in locating other stocks that match this mixed growth and momentum pattern? You can use the same screen yourself to find more possible chances. Try the "Strong Growth Stock Technical Setups" screen here.
Disclaimer: This article is for information only and does not form financial guidance, a suggestion, or a deal to buy or sell any security. Investing holds risk, including the possible loss of original funds. Always do your own complete study and think about your personal financial position and risk comfort before making any investment choices.
