Unlocking the high Growth Potential of GENEDX HOLDINGS CORP (NASDAQ:WGS).

We've identified GENEDX HOLDINGS CORP (NASDAQ:WGS) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:WGS for further developments.

Technical analysis of WGS

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, WGS scores 9 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that WGS is one of the better performing stocks in the market, outperforming 99% of all stocks. We also observe that the gains produced by WGS over the past year are nicely spread over this period.
• WGS is part of the Health Care Providers & Services industry. There are 107 other stocks in this industry. WGS outperforms 99% of them.
• WGS is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so WGS slightly outperforms the market at the moment.
• In the last month WGS has a been trading in the 86.22 - 108.77 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 WGS for a complete technical analysis.

How do we evaluate the setup for WGS?

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 WGS is 7:

WGS has an excellent technical rating and 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 87.17, a Stop Loss order could be placed below this zone.

ChartMill's Evaluation of Growth

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. WGS scores a 7 out of 10:

Explosive Earnings Growth

• The quarterly earnings of WGS have shown a 190.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• WGS shows accelerating EPS growth: when comparing the current Q2Q growth of 190.0% to the previous quarter Q2Q growth of 105.0%, we see the growth rate improving.
• EPS acceleration happened 3 quarters in a row.
• WGS has experienced 104.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• The recent q2q revenue growth of 66.57% of WGS showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• WGS shows accelerating Sales growth: when comparing the current Q2Q growth of 66.57% to the previous quarter Q2Q growth of 44.23%, we see the growth rate improving.
• WGS has achieved significant 1-year revenue growth of 50.79%, 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.
• WGS has seen a 41.67% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• WGS has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Profitability & Financial Strength

• With a favorable trend in its operating margin over the past year, WGS demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With positive growth in its free cash flow (FCF) over the past year, WGS showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• A Debt/Equity ratio of 0.29 indicates that WGS is leveraging debt effectively without excessive risk.

Institutional Confidence & Market Strength

• With institutional shareholders at 89.07%, WGS demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• WGS has achieved an impressive Relative Strength (RS) rating of 99.86, showcasing its ability to outperform the broader market.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

This article should in no way be interpreted as advice. 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.