Is NASDAQ:LNTH on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Feb 8, 2024

Exploring Growth Potential: LANTHEUS HOLDINGS INC (NASDAQ:LNTH) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and LANTHEUS HOLDINGS INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected LANTHEUS HOLDINGS INC on our screen for growth with base formation, suggesting it merits a closer look.

Understanding NASDAQ:LNTH'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. NASDAQ:LNTH has received a 8 out of 10:

LNTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.71%, which is quite impressive.
The Earnings Per Share has been growing by 33.91% on average over the past years. This is a very strong growth
The Revenue has grown by 50.42% in the past year. This is a very strong growth!
Measured over the past years, LNTH shows a very strong growth in Revenue. The Revenue has been growing by 23.06% on average per year.
Based on estimates for the next years, LNTH will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.38% on average per year.
LNTH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.45% yearly.

Evaluating Health: NASDAQ:LNTH

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:LNTH has earned a 7 out of 10:

LNTH has an Altman-Z score of 4.56. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.56, LNTH is doing good in the industry, outperforming 76.26% of the companies in the same industry.
LNTH has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as LNTH would need 2.17 years to pay back of all of its debts.
The Debt to FCF ratio of LNTH (2.17) is better than 90.40% of its industry peers.
Although LNTH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
LNTH has a Current Ratio of 5.37. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
LNTH has a better Current ratio (5.37) than 68.69% of its industry peers.
A Quick Ratio of 5.05 indicates that LNTH has no problem at all paying its short term obligations.
With a decent Quick ratio value of 5.05, LNTH is doing good in the industry, outperforming 73.23% of the companies in the same industry.

Profitability Examination for NASDAQ:LNTH

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:LNTH scores a 7 out of 10:

LNTH has a better Return On Assets (6.84%) than 87.37% of its industry peers.
LNTH has a better Return On Equity (14.90%) than 90.91% of its industry peers.
LNTH's Return On Invested Capital of 11.01% is amongst the best of the industry. LNTH outperforms 92.42% of its industry peers.
LNTH has a better Profit Margin (8.63%) than 83.84% of its industry peers.
With an excellent Operating Margin value of 15.55%, LNTH belongs to the best of the industry, outperforming 88.38% of the companies in the same industry.
LNTH has a better Gross Margin (63.31%) than 65.66% of its industry peers.
In the last couple of years the Gross Margin of LNTH has grown nicely.

How do we evaluate the setup for NASDAQ:LNTH?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:LNTH currently has a 8 as setup rating:

LNTH has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 54.61. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 54.24, 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 LNTH

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

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.