NVIDIA CORP (NASDAQ:NVDA) is a candidate for high growth investors. Here's why.

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.

What is the technical picture of NASDAQ:NVDA telling us.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall NVDA gets a technical rating of 9 out of 10. In the last year, NVDA was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• 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 96% of 108 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.

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

How do we evaluate the setup for NASDAQ:NVDA?

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. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 136.91, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Some of the high growth metrics of NASDAQ:NVDA highlighted

• NVIDIA CORP has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 101.0% increase. This indicates improving financial performance and the company's effective management of its operations.
• The recent q2q revenue growth of 93.61% of NVIDIA CORP showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• The 3-year EPS growth of NVIDIA CORP (73.17%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• NVIDIA CORP has demonstrated strong 1-year revenue growth of 152.0%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• Analysts' average next Quarter EPS Estimate for NVIDIA CORP has witnessed a 9.95% change in the last 3 months, underscoring the dynamic nature of market sentiment towards the company's EPS prospects.
• In the most recent financial report, NVIDIA CORP reported a 101.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The operating margin of NVIDIA CORP has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• NVIDIA CORP has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• NVIDIA CORP exhibits a strong Return on Equity (ROE) of 95.71%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a Debt-to-Equity ratio at 0.13, NVIDIA CORP showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• NVIDIA CORP exhibits a favorable ownership structure, with an institutional shareholder ownership of 71.36%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• NVIDIA CORP has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• NVIDIA CORP has exhibited strong Relative Strength(RS) in recent periods, with a current 97.11 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. NVIDIA CORP shows promising potential for continued price momentum.

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.