Why NASDAQ:NVDA Is a Standout High-Growth Stock in a Consolidation Phase.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if NVIDIA CORP (NASDAQ:NVDA) 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 NVIDIA CORP showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Assessment of NASDAQ:NVDA

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:NVDA boasts a 9 out of 10:

• The Earnings Per Share has grown by an impressive 320.95% over the past year.
• Measured over the past years, NVDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.90% on average per year.
• NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 194.69%.
• NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.06% yearly.
• NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.09% yearly.
• Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 32.85% on average per year.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NVDA has achieved a 8 out of 10:

• NVDA has an Altman-Z score of 82.03. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
• NVDA has a better Altman-Z score (82.03) than 98.15% of its industry peers.
• The Debt to FCF ratio of NVDA is 0.18, which is an excellent value as it means it would take NVDA, only 0.18 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of NVDA (0.18) is better than 86.11% of its industry peers.
• NVDA has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
• NVDA has a Current Ratio of 4.27. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
• NVDA has a Current ratio of 4.27. This is in the better half of the industry: NVDA outperforms 67.59% of its industry peers.
• A Quick Ratio of 3.79 indicates that NVDA has no problem at all paying its short term obligations.
• NVDA's Quick ratio of 3.79 is fine compared to the rest of the industry. NVDA outperforms 70.37% of its industry peers.

How do we evaluate the Profitability for NASDAQ:NVDA?

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:NVDA scores a 10 out of 10:

• NVDA's Return On Assets of 62.20% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
• The Return On Equity of NVDA (91.15%) is better than 100.00% of its industry peers.
• The Return On Invested Capital of NVDA (73.58%) is better than 100.00% of its industry peers.
• NVDA had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 11.05%.
• The last Return On Invested Capital (73.58%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
• The Profit Margin of NVDA (55.04%) is better than 98.15% of its industry peers.
• In the last couple of years the Profit Margin of NVDA has grown nicely.
• Looking at the Operating Margin, with a value of 61.87%, NVDA belongs to the top of the industry, outperforming 99.07% of the companies in the same industry.
• In the last couple of years the Operating Margin of NVDA has grown nicely.
• NVDA's Gross Margin of 75.98% is amongst the best of the industry. NVDA outperforms 94.44% of its industry peers.
• In the last couple of years the Gross Margin of NVDA has grown nicely.

Looking at the 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:NVDA has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, NVDA also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. Another positive sign is the recent Pocket Pivot signal.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.