NYSE:DV, a strong growth stock, setting up for a breakout.

Last update: May 6, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether DOUBLEVERIFY HOLDINGS INC (NYSE:DV) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but DOUBLEVERIFY HOLDINGS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Assessing Growth Metrics for NYSE:DV

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:DV boasts a 9 out of 10:

The Earnings Per Share has grown by an impressive 64.00% over the past year.
The Earnings Per Share has been growing by 83.14% on average over the past years. This is a very strong growth
DV shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.55%.
The Revenue has been growing by 40.57% on average over the past years. This is a very strong growth!
DV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.93% yearly.
Based on estimates for the next years, DV will show a very strong growth in Revenue. The Revenue will grow by 20.48% on average per year.

Assessing Health for NYSE:DV

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:DV has earned a 8 out of 10:

An Altman-Z score of 19.85 indicates that DV is not in any danger for bankruptcy at the moment.
DV has a Altman-Z score of 19.85. This is amongst the best in the industry. DV outperforms 95.62% of its industry peers.
DV has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
DV's Debt to FCF ratio of 0.06 is amongst the best of the industry. DV outperforms 82.48% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that DV is not too dependend on debt financing.
DV has a better Debt to Equity ratio (0.00) than 67.88% of its industry peers.
A Current Ratio of 6.36 indicates that DV has no problem at all paying its short term obligations.
DV's Current ratio of 6.36 is amongst the best of the industry. DV outperforms 92.34% of its industry peers.
A Quick Ratio of 6.36 indicates that DV has no problem at all paying its short term obligations.
The Quick ratio of DV (6.36) is better than 92.34% 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:

DV's Return On Assets of 5.74% is amongst the best of the industry. DV outperforms 81.39% of its industry peers.
DV has a better Return On Equity (6.65%) than 77.74% of its industry peers.
The Return On Invested Capital of DV (5.45%) is better than 80.66% of its industry peers.
The 3 year average ROIC (4.10%) for DV is below the current ROIC(5.45%), indicating increased profibility in the last year.
DV's Profit Margin of 12.47% is amongst the best of the industry. DV outperforms 84.31% of its industry peers.
In the last couple of years the Profit Margin of DV has grown nicely.
DV's Operating Margin of 14.96% is amongst the best of the industry. DV outperforms 85.77% of its industry peers.
DV's Operating Margin has improved in the last couple of years.
DV has a better Gross Margin (81.38%) than 87.59% of its industry peers.

Why is NYSE:DV a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:DV this score is currently 8:

DV has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 30.38. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 29.66, 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 DV contains the most current fundamental analsysis.

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

Disclaimer

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.