Why NYSE:GLOB Is a Promising High-Growth Stock in the Midst of Consolidation.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether GLOBANT SA (NYSE:GLOB) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but GLOBANT SA has surfaced on our radar for growth with base formation, warranting further examination.

Growth Examination for NYSE:GLOB

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:GLOB has achieved a 8 out of 10:

• The Earnings Per Share has grown by an nice 15.86% over the past year.
• The Earnings Per Share has been growing by 26.96% on average over the past years. This is a very strong growth
• GLOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.54%.
• Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 32.04% on average per year.
• Based on estimates for the next years, GLOB will show a very strong growth in Earnings Per Share. The EPS will grow by 20.03% on average per year.
• The Revenue is expected to grow by 18.70% on average over the next years. This is quite good.

Exploring NYSE:GLOB's Health

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:GLOB, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 6.51 indicates that GLOB is not in any danger for bankruptcy at the moment.
• GLOB has a Altman-Z score of 6.51. This is amongst the best in the industry. GLOB outperforms 81.93% of its industry peers.
• The Debt to FCF ratio of GLOB is 1.45, which is an excellent value as it means it would take GLOB, only 1.45 years of fcf income to pay off all of its debts.
• GLOB's Debt to FCF ratio of 1.45 is fine compared to the rest of the industry. GLOB outperforms 75.90% of its industry peers.
• A Debt/Equity ratio of 0.04 indicates that GLOB is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.04, GLOB is in the better half of the industry, outperforming 79.52% of the companies in the same industry.

What does the Profitability looks like for NYSE:GLOB

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:GLOB was assigned a score of 5 for profitability:

• The Return On Assets of GLOB (5.80%) is better than 69.88% of its industry peers.
• Looking at the Return On Equity, with a value of 9.17%, GLOB is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
• GLOB's Return On Invested Capital of 9.16% is fine compared to the rest of the industry. GLOB outperforms 74.70% of its industry peers.
• GLOB has a better Profit Margin (7.56%) than 71.08% of its industry peers.
• Looking at the Operating Margin, with a value of 11.40%, GLOB is in the better half of the industry, outperforming 74.70% of the companies in the same industry.

Why is NYSE:GLOB a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:GLOB has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, GLOB also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 192.59, 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.

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

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

Keep in mind

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.