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

Last update: Nov 25, 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.

A Closer Look at Growth for NYSE:DV

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:DV has received a 8 out of 10:

The Earnings Per Share has grown by an nice 15.62% 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
The Revenue has grown by 19.58% in the past year. This is quite good.
DV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.57% yearly.
The Earnings Per Share is expected to grow by 41.02% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.66% on average over the next years. This is quite good.

Analyzing Health Metrics

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 12.59 indicates that DV is not in any danger for bankruptcy at the moment.
DV has a better Altman-Z score (12.59) than 84.95% of its industry peers.
The Debt to FCF ratio of DV is 0.03, which is an excellent value as it means it would take DV, only 0.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DV (0.03) is better than 82.44% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that DV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, DV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Current Ratio of 6.57 indicates that DV has no problem at all paying its short term obligations.
DV has a better Current ratio (6.57) than 91.40% of its industry peers.
DV has a Quick Ratio of 6.57. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 6.57, DV belongs to the top of the industry, outperforming 91.40% of the companies in the same industry.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:DV scores a 8 out of 10:

Looking at the Return On Assets, with a value of 5.02%, DV is in the better half of the industry, outperforming 76.34% of the companies in the same industry.
DV has a Return On Equity of 5.83%. This is in the better half of the industry: DV outperforms 73.48% of its industry peers.
DV has a better Return On Invested Capital (4.90%) than 73.84% of its industry peers.
The last Return On Invested Capital (4.90%) for DV is above the 3 year average (4.10%), which is a sign of increasing profitability.
With a decent Profit Margin value of 10.33%, DV is doing good in the industry, outperforming 77.42% of the companies in the same industry.
DV's Profit Margin has improved in the last couple of years.
DV has a better Operating Margin (12.74%) than 81.72% of its industry peers.
In the last couple of years the Operating Margin of DV has grown nicely.
DV has a better Gross Margin (82.42%) than 87.81% of its industry peers.

How does the Setup look for NYSE:DV

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:DV currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

DV has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 20.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 19.80, 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 DV

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

Disclaimer

This article should in no way be interpreted as advice. 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.