Why NYSE:CALX Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article we will dive into CALIX INC (NYSE:CALX) as a possible candidate for growth investing. Investors should always do their own research, but we noticed CALIX INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Evaluating Growth: NYSE:CALX

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CALX, the assigned 8 reflects its growth potential:

• CALX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.38%, which is quite impressive.
• Measured over the past years, CALX shows a very strong growth in Earnings Per Share. The EPS has been growing by 165.27% on average per year.
• The Revenue has grown by 27.46% in the past year. This is a very strong growth!
• The Revenue has been growing by 11.20% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 22.02% on average over the next years. This is a very strong growth
• CALX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.00% yearly.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

How do we evaluate the Health for NYSE:CALX?

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. NYSE:CALX has earned a 8 out of 10:

• An Altman-Z score of 10.03 indicates that CALX is not in any danger for bankruptcy at the moment.
• CALX has a Altman-Z score of 10.03. This is amongst the best in the industry. CALX outperforms 96.67% of its industry peers.
• CALX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 4.22 indicates that CALX has no problem at all paying its short term obligations.
• CALX has a better Current ratio (4.22) than 85.00% of its industry peers.
• A Quick Ratio of 3.14 indicates that CALX has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 3.14, CALX belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.

Understanding NYSE:CALX's Profitability

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, NYSE:CALX has achieved a 5:

• The Return On Assets of CALX (5.16%) is better than 78.33% of its industry peers.
• The Return On Equity of CALX (6.37%) is better than 73.33% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 4.89%, CALX is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
• With a decent Profit Margin value of 4.69%, CALX is doing good in the industry, outperforming 63.33% of the companies in the same industry.
• The Operating Margin of CALX (4.98%) is better than 63.33% of its industry peers.
• Looking at the Gross Margin, with a value of 51.99%, CALX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• CALX's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NYSE:CALX?

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. NYSE:CALX currently has a 7 as setup rating:

Although the technical rating is bad, CALX does present a nice setup opportunity. 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 38.69. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.07, a Stop Loss order could be placed below this zone.

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

For an up to date full fundamental analysis you can check the fundamental report of CALX

For an up to date full technical analysis you can check the technical report of CALX

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.