Exploring the Growth Potential of NASDAQ:SWAV as It Nears a Breakout.

Last update: May 9, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether SHOCKWAVE MEDICAL INC (NASDAQ:SWAV) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but SHOCKWAVE MEDICAL INC has surfaced on our radar for growth with base formation, warranting further examination.

ChartMill's Evaluation of Growth

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:

The Earnings Per Share has grown by an impressive 22.08% over the past year.
The Revenue has grown by 49.16% in the past year. This is a very strong growth!
SWAV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 126.31% yearly.
Based on estimates for the next years, SWAV will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.56% on average per year.
SWAV is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.10% yearly.

Health Examination for NASDAQ:SWAV

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 10.04 indicates that SWAV is not in any danger for bankruptcy at the moment.
SWAV has a Altman-Z score of 10.04. This is amongst the best in the industry. SWAV outperforms 88.02% of its industry peers.
SWAV has a better Debt to FCF ratio (4.42) than 84.38% 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.
SWAV has a Current ratio of 11.76. This is amongst the best in the industry. SWAV outperforms 94.27% of its industry peers.
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's Quick ratio of 10.73 is amongst the best of the industry. SWAV outperforms 94.79% of its industry peers.

Understanding NASDAQ:SWAV's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:SWAV, the assigned 6 is noteworthy for profitability:

SWAV has a Return On Assets of 9.40%. This is amongst the best in the industry. SWAV outperforms 91.67% of its industry peers.
The Return On Equity of SWAV (22.03%) is better than 95.31% of its industry peers.
SWAV's Return On Invested Capital of 9.19% is amongst the best of the industry. SWAV outperforms 88.54% of its industry peers.
The Profit Margin of SWAV (20.17%) is better than 94.79% of its industry peers.
SWAV has a better Operating Margin (21.78%) than 94.79% of its industry peers.
With an excellent Gross Margin value of 86.93%, SWAV belongs to the best of the industry, outperforming 96.35% of the companies in the same industry.
SWAV's Gross Margin has improved in the last couple of years.

Why is NASDAQ:SWAV a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:SWAV this score is currently 8:

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 330.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 330.62, a Stop Loss order could be placed below this zone.

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

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

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.