NASDAQ:STAA—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Sep 26, 2023

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

Analyzing Growth Metrics

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:STAA has earned a 8 for growth:

STAA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.24% yearly.
Looking at the last year, STAA shows a quite strong growth in Revenue. The Revenue has grown by 16.92% in the last year.
The Revenue has been growing by 25.71% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 39.98% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.87% on average over the next years. This is a very strong growth

A Closer Look at Health for NASDAQ:STAA

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:STAA scores a 6 out of 10:

STAA has an Altman-Z score of 15.20. This indicates that STAA is financially healthy and has little risk of bankruptcy at the moment.
STAA has a Altman-Z score of 15.20. This is amongst the best in the industry. STAA outperforms 92.50% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that STAA is not too dependend on debt financing.
The Debt to Equity ratio of STAA (0.00) is better than 69.50% of its industry peers.
A Current Ratio of 6.05 indicates that STAA has no problem at all paying its short term obligations.
STAA has a Current ratio of 6.05. This is in the better half of the industry: STAA outperforms 69.50% of its industry peers.
STAA has a Quick Ratio of 5.58. This indicates that STAA is financially healthy and has no problem in meeting its short term obligations.
STAA's Quick ratio of 5.58 is fine compared to the rest of the industry. STAA outperforms 73.00% of its industry peers.

Assessing Profitability for NASDAQ:STAA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:STAA was assigned a score of 8 for profitability:

STAA has a better Return On Assets (5.65%) than 87.50% of its industry peers.
With an excellent Return On Equity value of 7.04%, STAA belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
The Return On Invested Capital of STAA (5.51%) is better than 80.50% of its industry peers.
STAA's Profit Margin of 8.14% is amongst the best of the industry. STAA outperforms 84.00% of its industry peers.
STAA's Profit Margin has improved in the last couple of years.
STAA has a better Operating Margin (8.52%) than 77.50% of its industry peers.
In the last couple of years the Operating Margin of STAA has grown nicely.
STAA has a Gross Margin of 77.97%. This is amongst the best in the industry. STAA outperforms 90.00% of its industry peers.
STAA's Gross Margin has improved in the last couple of years.

Why is NASDAQ:STAA a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:STAA this score is currently 8:

Although the technical rating is bad, STAA does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. We notice that large players showed an interest for STAA in the last couple of days, which is a good sign.

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

Our latest full fundamental report of STAA contains the most current fundamental analsysis.

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

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.