Why NASDAQ:STAA Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article we will dive into STAAR SURGICAL CO (NASDAQ:STAA) as a possible candidate for growth investing. Investors should always do their own research, but we noticed STAAR SURGICAL CO showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Examination for NASDAQ:STAA

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:STAA has achieved a 8 out of 10:

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

Health Insights: NASDAQ:STAA

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:STAA has achieved a 6 out of 10:

• An Altman-Z score of 14.88 indicates that STAA is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 14.88, STAA belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
• STAA has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
• STAA's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. STAA outperforms 69.50% of its industry peers.
• STAA has a Current Ratio of 6.05. This indicates that STAA is financially healthy and has no problem in meeting its short term obligations.
• STAA has a better Current ratio (6.05) than 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.
• With a decent Quick ratio value of 5.58, STAA is doing good in the industry, outperforming 73.00% of the companies in the same industry.

Analyzing Profitability Metrics

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:STAA scores a 8 out of 10:

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

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:STAA has a 8 as its setup rating, indicating its current consolidation status.

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. There is very little resistance above the current price. 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.

For an up to date full fundamental analysis you can check the fundamental report of STAA

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

Disclaimer

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.