NYSE:FOUR: a strong growth stock preparing for the next leg up?.

Last update: Oct 9, 2023

In this article we will dive into SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) as a possible candidate for growth investing. Investors should always do their own research, but we noticed SHIFT4 PAYMENTS INC-CLASS A showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Exploring NYSE:FOUR's Growth

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:FOUR has received a 8 out of 10:

FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 163.41%, which is quite impressive.
FOUR shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.59%.
Measured over the past years, FOUR shows a very strong growth in Revenue. The Revenue has been growing by 39.69% on average per year.
FOUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.86% yearly.
FOUR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.47% yearly.

Understanding NYSE:FOUR's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:FOUR has achieved a 6 out of 10:

FOUR has a Altman-Z score of 2.35. This is amongst the best in the industry. FOUR outperforms 82.00% of its industry peers.
With a decent Debt to FCF ratio value of 6.84, FOUR is doing good in the industry, outperforming 62.00% of the companies in the same industry.
A Current Ratio of 3.24 indicates that FOUR has no problem at all paying its short term obligations.
FOUR has a Current ratio of 3.24. This is amongst the best in the industry. FOUR outperforms 87.00% of its industry peers.
A Quick Ratio of 3.23 indicates that FOUR has no problem at all paying its short term obligations.
FOUR has a Quick ratio of 3.23. This is amongst the best in the industry. FOUR outperforms 88.00% of its industry peers.

Analyzing Profitability Metrics

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:FOUR has achieved a 5:

Looking at the Return On Assets, with a value of 4.33%, FOUR is in the better half of the industry, outperforming 79.00% of the companies in the same industry.
FOUR's Return On Equity of 31.47% is amongst the best of the industry. FOUR outperforms 93.00% of its industry peers.
The Return On Invested Capital of FOUR (4.44%) is better than 78.00% of its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.

Why is NYSE:FOUR a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:FOUR is 8:

Although the technical rating is bad, FOUR does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 57.91. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 54.47, 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 FOUR

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

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.