Why NASDAQ:LNTH Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Aug 22, 2024

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

How We Gauge Growth for NASDAQ:LNTH

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:LNTH boasts a 8 out of 10:

The Earnings Per Share has grown by an impressive 24.95% over the past year.
The Earnings Per Share has been growing by 45.36% on average over the past years. This is a very strong growth
LNTH shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.82%.
Measured over the past years, LNTH shows a very strong growth in Revenue. The Revenue has been growing by 30.43% 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 14.82% on average per year.
LNTH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.40% yearly.

Health Assessment of NASDAQ:LNTH

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 NASDAQ:LNTH, the assigned 8 for health provides valuable insights:

An Altman-Z score of 6.96 indicates that LNTH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LNTH (6.96) is better than 84.29% of its industry peers.
LNTH has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
LNTH's Debt to FCF ratio of 1.75 is amongst the best of the industry. LNTH outperforms 89.01% 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 4.68. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
LNTH's Current ratio of 4.68 is fine compared to the rest of the industry. LNTH outperforms 68.06% of its industry peers.
LNTH has a Quick Ratio of 4.41. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
LNTH's Quick ratio of 4.41 is fine compared to the rest of the industry. LNTH outperforms 71.73% of its industry peers.

Profitability Examination for NASDAQ:LNTH

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. NASDAQ:LNTH was assigned a score of 8 for profitability:

Looking at the Return On Assets, with a value of 22.09%, LNTH belongs to the top of the industry, outperforming 99.48% of the companies in the same industry.
The Return On Equity of LNTH (41.74%) is better than 99.48% of its industry peers.
With an excellent Return On Invested Capital value of 21.48%, LNTH belongs to the best of the industry, outperforming 98.95% of the companies in the same industry.
The Profit Margin of LNTH (29.80%) is better than 98.43% of its industry peers.
LNTH's Profit Margin has improved in the last couple of years.
LNTH's Operating Margin of 31.50% is amongst the best of the industry. LNTH outperforms 98.43% of its industry peers.
In the last couple of years the Operating Margin of LNTH has grown nicely.
LNTH's Gross Margin of 64.50% is fine compared to the rest of the industry. LNTH outperforms 65.44% of its industry peers.
LNTH's Gross Margin has improved in the last couple of years.

Why is NASDAQ:LNTH 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, NASDAQ:LNTH has a 7 as its setup rating, indicating its current consolidation status.

LNTH has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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.

Disclaimer

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.