Is NASDAQ:ESOA a Fit for Growth Investing Strategies?

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ENERGY SERVICES OF AMERICA (NASDAQ:ESOA) is suited for growth investing. Investors should of course do their own research, but we spotted ENERGY SERVICES OF AMERICA showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of NASDAQ:ESOA highlighted

• The quarterly earnings of ENERGY SERVICES OF AMERICA have shown a 110.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The quarter-to-quarter (Q2Q) revenue growth of 67.15% of ENERGY SERVICES OF AMERICA has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• The EPS of ENERGY SERVICES OF AMERICA has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• The Return on Equity(ROE) of ENERGY SERVICES OF AMERICA is 11.18%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• The Relative Strength (RS) of ENERGY SERVICES OF AMERICA has consistently been strong, with a current 98.59 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. ENERGY SERVICES OF AMERICA demonstrates promising potential for sustained price momentum.
• Maintaining a Debt-to-Equity ratio of 1.42, ENERGY SERVICES OF AMERICA demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• With institutional shareholders at 19.12%, ENERGY SERVICES OF AMERICA demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.

In-Depth Technical Analysis of NASDAQ:ESOA

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall ESOA gets a technical rating of 10 out of 10. Both in the recent history as in the last year, ESOA has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that ESOA is one of the better performing stocks in the market, outperforming 98% of all stocks. We also observe that the gains produced by ESOA over the past year are nicely spread over this period.
• ESOA is part of the Energy Equipment & Services industry. There are 66 other stocks in this industry. ESOA outperforms 100% of them.
• A new 52 week high is currently being made by ESOA, which is a very good signal! However, this is in line with the S&P500, which is also trading near new highs.
• In the last month ESOA has a been trading in the 5.22 - 7.38 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

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

Fundamental analysis of NASDAQ:ESOA

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, ESOA scores 3 out of 10 in our fundamental rating. ESOA was compared to 66 industry peers in the Energy Equipment & Services industry. While ESOA is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, ESOA is valued expensive at the moment.

Check the latest full fundamental report of ESOA for a complete fundamental analysis.

More growth stocks can be found in our CANSLIM screen.

Keep in mind

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.