NYSE:DV—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Last update: Dec 17, 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.

Understanding NYSE:DV's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:DV has earned a 8 for growth:

DV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.62%, which is quite good.
The Earnings Per Share has been growing by 83.14% on average over the past years. This is a very strong growth
DV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.58%.
The Revenue has been growing by 40.57% on average over the past years. This is a very strong growth!
Based on estimates for the next years, DV will show a very strong growth in Earnings Per Share. The EPS will grow by 34.16% on average per year.
DV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.60% yearly.

Health Assessment of 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:

DV has an Altman-Z score of 12.61. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.61, DV belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
DV has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
DV's Debt to FCF ratio of 0.03 is amongst the best of the industry. DV outperforms 82.01% 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.
Looking at the Debt to Equity ratio, with a value of 0.00, DV is in the better half of the industry, outperforming 66.19% of the companies in the same industry.
DV has a Current Ratio of 6.57. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
DV has a better Current ratio (6.57) than 92.09% of its industry peers.
A Quick Ratio of 6.57 indicates that DV has no problem at all paying its short term obligations.
DV's Quick ratio of 6.57 is amongst the best of the industry. DV outperforms 92.09% of its industry peers.

Profitability Assessment of NYSE:DV

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:DV has achieved a 8:

DV's Return On Assets of 5.02% is fine compared to the rest of the industry. DV outperforms 75.90% of its industry peers.
DV has a Return On Equity of 5.83%. This is in the better half of the industry: DV outperforms 73.74% of its industry peers.
The Return On Invested Capital of DV (4.90%) is better than 73.74% of its industry peers.
The 3 year average ROIC (4.10%) for DV is below the current ROIC(4.90%), indicating increased profibility in the last year.
With a decent Profit Margin value of 10.33%, DV is doing good in the industry, outperforming 77.34% of the companies in the same industry.
DV's Profit Margin has improved in the last couple of years.
The Operating Margin of DV (12.74%) is better than 81.30% of its industry peers.
DV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 82.42%, DV belongs to the best of the industry, outperforming 87.77% of the companies in the same industry.

Looking at the Setup

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 8 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. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 20.07, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

Check the latest full technical report of DV for a complete technical analysis.

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.