NASDAQ:PGNY: a strong growth stock preparing for the next leg up?.

Last update: Nov 14, 2023

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether PROGYNY INC (NASDAQ:PGNY) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but PROGYNY INC has surfaced on our radar for growth with base formation, warranting further examination.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PGNY has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 23.81% over the past year.
Looking at the last year, PGNY shows a very strong growth in Revenue. The Revenue has grown by 47.54%.
PGNY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 74.53% yearly.
The Earnings Per Share is expected to grow by 53.40% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 24.63% on average over the next years. This is a very strong growth

What does the Health looks like for NASDAQ:PGNY

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PGNY, the assigned 8 for health provides valuable insights:

PGNY has an Altman-Z score of 10.68. This indicates that PGNY is financially healthy and has little risk of bankruptcy at the moment.
PGNY's Altman-Z score of 10.68 is amongst the best of the industry. PGNY outperforms 93.86% of its industry peers.
PGNY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 3.16 indicates that PGNY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.16, PGNY belongs to the best of the industry, outperforming 88.60% of the companies in the same industry.
A Quick Ratio of 3.16 indicates that PGNY has no problem at all paying its short term obligations.
The Quick ratio of PGNY (3.16) is better than 88.60% of its industry peers.

Understanding NASDAQ:PGNY's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PGNY, the assigned 6 is noteworthy for profitability:

PGNY has a Return On Assets of 7.15%. This is amongst the best in the industry. PGNY outperforms 87.72% of its industry peers.
PGNY has a Return On Equity of 10.08%. This is in the better half of the industry: PGNY outperforms 76.32% of its industry peers.
With a decent Return On Invested Capital value of 7.66%, PGNY is doing good in the industry, outperforming 78.07% of the companies in the same industry.
The last Return On Invested Capital (7.66%) for PGNY is above the 3 year average (6.26%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 5.03%, PGNY belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
PGNY has a better Operating Margin (5.00%) than 65.79% of its industry peers.
In the last couple of years the Gross Margin of PGNY has grown nicely.

How does the Setup look for NASDAQ:PGNY

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:PGNY exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is bad, PGNY does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 30.29, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.