Why the high growth investor may take a look at NASDAQ:NVDA.

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.

Insights from Technical Analysis

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.

Taking everything into account, NVDA scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, NVDA has proven to be a steady performer, scoring decent points in every aspect analyzed.

• 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 98% of all stocks. On top of that, NVDA also shows a nice and consistent pattern of rising prices.
• NVDA is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 97% of 108 stocks in the same industry.
• NVDA 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.
• NVDA is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

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

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:NVDA scores a 7 out of 10:

NVDA has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 133.81, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NASDAQ:NVDA highlighted

• The earnings per share (EPS) of NVIDIA CORP have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 152.0% increase. This reflects the company's ability to improve its profitability over time.
• 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.
• Over the past 3 years, NVIDIA CORP has demonstrated 73.17% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With notable 1-year revenue growth of 195.0%, NVIDIA CORP 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 average next Quarter EPS Estimate by analysts was adjusted by 6.27%, reflecting the evolving market expectations for the company's EPS growth.
• The quarterly earnings of NVIDIA CORP have shown a 152.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• NVIDIA CORP has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With positive growth in its free cash flow (FCF) over the past year, NVIDIA CORP showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• NVIDIA CORP demonstrates a strong Return on Equity(ROE) of 91.15%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. NVIDIA CORP shows promising potential for continued success.
• 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 64.11% 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 consistently been strong, with a current 98.04 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. NVIDIA CORP demonstrates promising potential for sustained price momentum.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

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.