NYSE:CALX: a strong growth stock preparing for the next leg up?.

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.

Assessing Growth for 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.
• The Earnings Per Share has been growing by 165.27% on average over the past years. This is a very strong growth
• CALX shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.46%.
• CALX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.20% yearly.
• Based on estimates for the next years, CALX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.20% on average per year.
• CALX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.31% yearly.

Health Assessment of NYSE:CALX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CALX was assigned a score of 8 for health:

• An Altman-Z score of 10.94 indicates that CALX is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 10.94, CALX belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
• 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's Current ratio of 4.22 is amongst the best of the industry. CALX outperforms 86.21% of its industry peers.
• CALX has a Quick Ratio of 3.14. This indicates that CALX is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 3.14, CALX belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.

Analyzing Profitability Metrics

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:

• CALX has a Return On Assets of 5.16%. This is in the better half of the industry: CALX outperforms 77.59% of its industry peers.
• With a decent Return On Equity value of 6.37%, CALX is doing good in the industry, outperforming 72.41% of the companies in the same industry.
• With a decent Return On Invested Capital value of 4.89%, CALX is doing good in the industry, outperforming 63.79% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 4.69%, CALX is in the better half of the industry, outperforming 63.79% of the companies in the same industry.
• With a decent Operating Margin value of 4.98%, CALX is doing good in the industry, outperforming 62.07% of the companies in the same industry.
• The Gross Margin of CALX (51.99%) is better than 75.86% of its industry peers.
• In the last couple of years the Gross Margin of CALX has grown nicely.

How does the Setup look for NYSE:CALX

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:CALX is 7:

CALX has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 42.94. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 42.75, a Stop Loss order could be placed below this zone.

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

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

Our latest full technical report of CALX contains the most current technical analsysis.

Disclaimer

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.