NASDAQ:SWAV: a strong growth stock preparing for the next leg up?.

In this article, we'll take a closer look at SHOCKWAVE MEDICAL INC (NASDAQ:SWAV) as a potential candidate for growth investing. While it's important for investors to conduct their own research, SHOCKWAVE MEDICAL INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Analysis for NASDAQ:SWAV

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:SWAV has earned a 8 for growth:

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

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:SWAV has earned a 6 out of 10:

• An Altman-Z score of 9.94 indicates that SWAV is not in any danger for bankruptcy at the moment.
• SWAV has a better Altman-Z score (9.94) than 88.78% of its industry peers.
• SWAV's Debt to FCF ratio of 4.42 is amongst the best of the industry. SWAV outperforms 84.69% of its industry peers.
• SWAV has a Current Ratio of 11.76. This indicates that SWAV is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 11.76, SWAV belongs to the top of the industry, outperforming 94.39% of the companies in the same industry.
• A Quick Ratio of 10.73 indicates that SWAV has no problem at all paying its short term obligations.
• SWAV has a Quick ratio of 10.73. This is amongst the best in the industry. SWAV outperforms 94.90% of its industry peers.

Understanding NASDAQ:SWAV's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:SWAV has earned a 6 out of 10:

• SWAV has a Return On Assets of 9.40%. This is amongst the best in the industry. SWAV outperforms 92.35% of its industry peers.
• SWAV has a better Return On Equity (22.03%) than 95.92% of its industry peers.
• SWAV has a Return On Invested Capital of 9.19%. This is amongst the best in the industry. SWAV outperforms 89.29% 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.
• Looking at the Operating Margin, with a value of 21.78%, SWAV belongs to the top of the industry, outperforming 94.90% of the companies in the same industry.
• The Gross Margin of SWAV (86.93%) is better than 95.92% of its industry peers.
• SWAV's Gross Margin has improved in the last couple of years.

Why is NASDAQ:SWAV a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:SWAV scores a 7 out of 10:

Besides having an excellent technical rating, SWAV also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 327.71. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 327.49, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.