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Why NYSE:DV Is a Standout High-Growth Stock in a Consolidation Phase.

By Mill Chart

Last update: Feb 16, 2024

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

Growth Insights: NYSE:DV

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:DV, the assigned 9 reflects its growth potential:

  • Measured over the past years, DV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.56% on average per year.
  • DV shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.83%.
  • DV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.29% yearly.
  • The Earnings Per Share is expected to grow by 56.66% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 22.48% on average over the next years. This is a very strong growth
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

How do we evaluate the Health for NYSE:DV?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:DV, the assigned 8 for health provides valuable insights:

  • An Altman-Z score of 27.23 indicates that DV is not in any danger for bankruptcy at the moment.
  • DV's Altman-Z score of 27.23 is amongst the best of the industry. DV outperforms 97.47% of its industry peers.
  • The Debt to FCF ratio of DV is 0.08, which is an excellent value as it means it would take DV, only 0.08 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of DV (0.08) is better than 85.56% of its industry peers.
  • DV has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of DV (0.00) is better than 66.06% of its industry peers.
  • DV has a Current Ratio of 6.28. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
  • DV's Current ratio of 6.28 is amongst the best of the industry. DV outperforms 89.89% of its industry peers.
  • A Quick Ratio of 6.28 indicates that DV has no problem at all paying its short term obligations.
  • DV has a better Quick ratio (6.28) than 89.89% of its industry peers.

Looking at the Profitability

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

  • Looking at the Return On Assets, with a value of 4.80%, DV belongs to the top of the industry, outperforming 83.75% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 5.58%, DV belongs to the top of the industry, outperforming 80.14% of the companies in the same industry.
  • DV has a Return On Invested Capital of 5.07%. This is amongst the best in the industry. DV outperforms 81.23% of its industry peers.
  • The 3 year average ROIC (3.53%) for DV is below the current ROIC(5.07%), indicating increased profibility in the last year.
  • DV's Profit Margin of 10.56% is amongst the best of the industry. DV outperforms 85.20% of its industry peers.
  • DV has a Operating Margin of 14.35%. This is amongst the best in the industry. DV outperforms 85.20% of its industry peers.
  • With an excellent Gross Margin value of 81.38%, DV belongs to the best of the industry, outperforming 88.09% of the companies in the same industry.

How do we evaluate the setup for NYSE:DV?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:DV exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, DV also presents 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 support zone below the current price at 41.61, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

Keep in mind

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.

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