Delving into NASDAQ:INOD's high Growth Prospects.

Our stockscreener has identified a possible breakout setup on INNODATA INC (NASDAQ:INOD). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:INOD for potential opportunities.

Deciphering the Technical Picture of NASDAQ:INOD

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall INOD gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, INOD is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, INOD did better than 99% of all other stocks.
• INOD is one of the better performing stocks in the Professional Services industry, it outperforms 100% of 80 stocks in the same industry.
• INOD is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month INOD has a been trading in the 23.67 - 49.72 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 INOD

How do we evaluate the setup for NASDAQ:INOD?

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, NASDAQ:INOD has a 8 as its setup rating, indicating its current consolidation status.

INOD has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 45.99. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 41.63, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for INOD in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Some of the high growth metrics of NASDAQ:INOD highlighted

• INNODATA INC has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 5.0K% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• INNODATA INC has achieved 136.0% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• With notable 1-year revenue growth of 71.63%, INNODATA INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• The recent financial report of INNODATA INC demonstrates a 5.0K% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• INNODATA INC shows accelerating EPS growth: when comparing the current Q2Q growth of 5.0K% to the previous year Q2Q growth of 108.0%, we see the growth rate improving.
• With a favorable trend in its free cash flow (FCF) over the past year, INNODATA INC demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• INNODATA INC has achieved an impressive Return on Equity (ROE) of 41.95%, showcasing its ability to generate favorable returns for shareholders.
• With a current Debt-to-Equity ratio at 0.15, INNODATA INC showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• With 43.45% of the total shares held by institutional investors, INNODATA INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• INNODATA INC has achieved an impressive Relative Strength (RS) rating of 99.38, showcasing its ability to outperform the broader market. This strong performance positions INNODATA INC as an attractive stock for potential price appreciation.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

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.