Why NASDAQ:NVDA qualifies as a high growth stock.

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

Deciphering the Technical Picture of NASDAQ:NVDA

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that NVDA is one of the better performing stocks in the market, outperforming 97% of all stocks. We also observe that the gains produced by NVDA over the past year are nicely spread over this period.
• NVDA is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 99% of 109 stocks in the same industry.
• NVDA is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so NVDA is lagging the market slightly.
• In the last month NVDA has a been trading in the 103.69 - 127.67 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of NVDA contains the most current technical analsysis.

Why is NASDAQ:NVDA 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 extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:NVDA has a 7 as its setup rating:

NVDA has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 121.11, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NVDA in the last couple of days, which is a good sign.

Looking into the high growth metrics of NVIDIA CORP

• The EPS of NVIDIA CORP has exhibited growth from one quarter to another (Q2Q), with a 152.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• The q2q revenue growth of 122.0% of NVIDIA CORP highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• NVIDIA CORP has achieved 73.17% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• The 1-year revenue growth of NVIDIA CORP (195.0%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• NVIDIA CORP has seen a 6.09% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• The recent financial report of NVIDIA CORP demonstrates a 152.0% 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
• With a favorable trend in its operating margin over the past year, NVIDIA CORP demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With a favorable trend in its free cash flow (FCF) over the past year, NVIDIA CORP 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.
• In terms of Return on Equity(ROE), NVIDIA CORP is performing well, achieving a 91.15% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• Maintaining a Debt-to-Equity ratio of 0.15, NVIDIA CORP demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• With 63.86% of the total shares held by institutional investors, NVIDIA CORP showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• NVIDIA CORP has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• The Relative Strength (RS) of NVIDIA CORP has been consistently solid, with a current 97.24 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. NVIDIA CORP exhibits strong prospects for further 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.