Exploring the Growth Potential of NASDAQ:META as It Nears a Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if META PLATFORMS INC-CLASS A (NASDAQ:META) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted META PLATFORMS INC-CLASS A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

What does the Growth looks like for NASDAQ:META

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:META has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 87.38% over the past year.
• Measured over the past years, META shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.50% on average per year.
• META shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.06%.
• Measured over the past years, META shows a quite strong growth in Revenue. The Revenue has been growing by 19.29% on average per year.
• Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.08% on average per year.
• The Revenue is expected to grow by 13.63% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NASDAQ:META's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:META has received a 8 out of 10:

• An Altman-Z score of 11.91 indicates that META is not in any danger for bankruptcy at the moment.
• The Altman-Z score of META (11.91) is better than 91.43% of its industry peers.
• META has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.55, META is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
• META has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
• META has a Current Ratio of 2.73. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
• META has a better Current ratio (2.73) than 64.29% of its industry peers.
• A Quick Ratio of 2.73 indicates that META has no problem at all paying its short term obligations.
• META has a Quick ratio of 2.73. This is in the better half of the industry: META outperforms 64.29% of its industry peers.

How do we evaluate the Profitability for NASDAQ:META?

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, NASDAQ:META has achieved a 8:

• With an excellent Return On Assets value of 21.66%, META belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
• The Return On Equity of META (33.76%) is better than 100.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 23.67%, META belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 10.97%.
• The last Return On Invested Capital (23.67%) for META is above the 3 year average (21.73%), which is a sign of increasing profitability.
• The Profit Margin of META (35.55%) is better than 97.14% of its industry peers.
• Looking at the Operating Margin, with a value of 40.87%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• META's Gross Margin of 81.50% is fine compared to the rest of the industry. META outperforms 72.86% of its industry peers.

How does the Setup look for NASDAQ:META

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:META currently has a 7 as setup rating:

META has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 590.57, 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.

Our latest full fundamental report of META contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of META

Disclaimer

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.