NASDAQ:SWAV qualifies as a high growth stock and is consolidating.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if SHOCKWAVE MEDICAL INC (NASDAQ:SWAV) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted SHOCKWAVE MEDICAL INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Assessing Growth Metrics for NASDAQ:SWAV

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:SWAV has received a 8 out of 10:

• SWAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.08%, which is quite impressive.
• SWAV shows a strong growth in Revenue. In the last year, the Revenue has grown by 49.16%.
• Measured over the past years, SWAV shows a very strong growth in Revenue. The Revenue has been growing by 126.31% on average per year.
• SWAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.88% yearly.
• The Revenue is expected to grow by 20.28% on average over the next years. This is a very strong growth

How We Gauge Health for NASDAQ:SWAV

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:SWAV was assigned a score of 6 for health:

• SWAV has an Altman-Z score of 8.29. This indicates that SWAV is financially healthy and has little risk of bankruptcy at the moment.
• SWAV has a better Altman-Z score (8.29) than 87.24% of its industry peers.
• With an excellent Debt to FCF ratio value of 4.42, SWAV belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
• A Current Ratio of 11.76 indicates that SWAV has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 11.76, SWAV belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
• SWAV has a Quick Ratio of 10.73. This indicates that SWAV is financially healthy and has no problem in meeting its short term obligations.
• SWAV has a Quick ratio of 10.73. This is amongst the best in the industry. SWAV outperforms 92.86% of its industry peers.

Profitability Examination for NASDAQ:SWAV

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:SWAV has achieved a 6:

• The Return On Assets of SWAV (9.40%) is better than 91.84% of its industry peers.
• SWAV's Return On Equity of 22.03% is amongst the best of the industry. SWAV outperforms 95.92% of its industry peers.
• SWAV's Return On Invested Capital of 9.19% is amongst the best of the industry. SWAV outperforms 88.78% of its industry peers.
• Looking at the Profit Margin, with a value of 20.17%, SWAV belongs to the top of the industry, outperforming 95.41% of the companies in the same industry.
• The Operating Margin of SWAV (21.78%) is better than 94.90% of its industry peers.
• The Gross Margin of SWAV (86.93%) is better than 96.94% of its industry peers.
• SWAV's Gross Margin has improved in the last couple of years.

Why is NASDAQ:SWAV a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:SWAV currently has a 8 as setup rating:

SWAV has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 258.42, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of SWAV contains the most current fundamental analsysis.

Our latest full technical report of SWAV contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.