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

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

Growth Assessment of NASDAQ:BL

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:BL scores a 8 out of 10:

• BL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.69%, which is quite impressive.
• BL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 74.65% yearly.
• The Revenue has grown by 11.37% in the past year. This is quite good.
• BL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.96% yearly.
• The Earnings Per Share is expected to grow by 9.68% on average over the next years. This is quite good.
• BL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.70% yearly.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:BL scores a 5 out of 10:

• A Current Ratio of 2.69 indicates that BL has no problem at all paying its short term obligations.
• The Current ratio of BL (2.69) is better than 71.68% of its industry peers.
• BL has a Quick Ratio of 2.69. This indicates that BL is financially healthy and has no problem in meeting its short term obligations.
• BL has a Quick ratio of 2.69. This is in the better half of the industry: BL outperforms 72.76% of its industry peers.

How do we evaluate the Profitability for NASDAQ:BL?

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:BL has earned a 6 out of 10:

• BL has a Return On Assets of 7.48%. This is amongst the best in the industry. BL outperforms 82.08% of its industry peers.
• BL has a Return On Equity of 34.47%. This is amongst the best in the industry. BL outperforms 93.19% of its industry peers.
• With a decent Return On Invested Capital value of 1.68%, BL is doing good in the industry, outperforming 67.74% of the companies in the same industry.
• BL has a Profit Margin of 19.83%. This is amongst the best in the industry. BL outperforms 88.17% of its industry peers.
• Looking at the Operating Margin, with a value of 4.38%, BL is in the better half of the industry, outperforming 69.89% of the companies in the same industry.
• BL has a better Gross Margin (75.27%) than 67.38% of its industry peers.

Looking at the 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:BL scores a 8 out of 10:

BL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 57.24, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BL in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

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.