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

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

Assessing Growth Metrics 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:

• The Earnings Per Share has grown by an impressive 62.71% over the past year.
• STAA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.10% yearly.
• STAA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.00%.
• The Revenue has been growing by 21.06% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 28.86% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 14.26% on average over the next years. This is quite good.

What does the Health looks like for NASDAQ:STAA

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:STAA, the assigned 8 reflects its health status:

• An Altman-Z score of 7.68 indicates that STAA is not in any danger for bankruptcy at the moment.
• STAA has a better Altman-Z score (7.68) than 84.74% of its industry peers.
• STAA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• STAA has a Current Ratio of 5.99. This indicates that STAA is financially healthy and has no problem in meeting its short term obligations.
• STAA's Current ratio of 5.99 is amongst the best of the industry. STAA outperforms 82.63% of its industry peers.
• STAA has a Quick Ratio of 5.38. This indicates that STAA is financially healthy and has no problem in meeting its short term obligations.
• STAA has a Quick ratio of 5.38. This is amongst the best in the industry. STAA outperforms 83.68% of its industry peers.

Understanding NASDAQ:STAA'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:STAA, the assigned 7 is noteworthy for profitability:

• With a decent Return On Assets value of 4.05%, STAA is doing good in the industry, outperforming 78.95% of the companies in the same industry.
• The Return On Equity of STAA (5.09%) is better than 77.37% of its industry peers.
• STAA has a better Return On Invested Capital (4.05%) than 75.26% of its industry peers.
• Looking at the Profit Margin, with a value of 6.38%, STAA is in the better half of the industry, outperforming 77.89% of the companies in the same industry.
• In the last couple of years the Profit Margin of STAA has grown nicely.
• STAA has a better Operating Margin (7.53%) than 75.26% of its industry peers.
• In the last couple of years the Operating Margin of STAA has grown nicely.
• The Gross Margin of STAA (78.73%) is better than 91.58% of its industry peers.

How does the Setup look for NASDAQ:STAA

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:STAA currently has a 7 as setup rating:

STAA has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 22.89, a Stop Loss order could be placed below this zone. 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.

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

Keep in mind

This article should in no way be interpreted as advice. 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.