Should you consider PAYMENTUS HOLDINGS INC-A (NYSE:PAY) for high growth investing?

Our stock screener has spotted PAYMENTUS HOLDINGS INC-A (NYSE:PAY) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:PAY.

Deciphering the Technical Picture of NYSE:PAY

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, PAY scores 7 out of 10 in our technical rating. In the last year, PAY was one of the better performers, but we do observe some doubts in the very recent evolution.

• When comparing the yearly performance of all stocks, we notice that PAY is one of the better performing stocks in the market, outperforming 93% of all stocks. On top of that, PAY also shows a nice and consistent pattern of rising prices.
• PAY is one of the better performing stocks in the Financial Services industry, it outperforms 93% of 101 stocks in the same industry.
• The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer.
• PAY is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so PAY is lagging the market.
• In the last month PAY has a been trading in the 29.11 - 35.65 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

How does the Setup look for NYSE:PAY

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:PAY is 7:

Besides having an excellent technical rating, PAY also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 30.14, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NYSE:PAY highlighted

• PAYMENTUS HOLDINGS INC-A has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 66.67% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• PAYMENTUS HOLDINGS INC-A has achieved significant quarter-to-quarter (Q2Q) revenue growth of 51.93%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• PAYMENTUS HOLDINGS INC-A has achieved 36.61% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• PAYMENTUS HOLDINGS INC-A has demonstrated strong 1-year revenue growth of 33.84%, 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.
• The average next Quarter EPS Estimate by analysts was adjusted by 14.69%, reflecting the evolving market expectations for the company's EPS growth.
• The recent financial report of PAYMENTUS HOLDINGS INC-A demonstrates a 66.67% 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
• The operating margin of PAYMENTUS HOLDINGS INC-A 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.
• With a favorable trend in its free cash flow (FCF) over the past year, PAYMENTUS HOLDINGS INC-A 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.
• With a current Debt-to-Equity ratio at 0.0, PAYMENTUS HOLDINGS INC-A showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• The ownership composition of PAYMENTUS HOLDINGS INC-A reflects a balanced investor ecosystem, with institutional shareholders owning 67.02%. This indicates a broader market participation and potential for increased trading liquidity.
• PAYMENTUS HOLDINGS INC-A 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 PAYMENTUS HOLDINGS INC-A has consistently been strong, with a current 93.5 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. PAYMENTUS HOLDINGS INC-A demonstrates promising potential for sustained 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.