Exploring the Growth Potential of NASDAQ:SWAV as It Nears a Breakout.

Last update: Oct 20, 2023

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

Evaluating Growth: NASDAQ:SWAV

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:SWAV has received a 8 out of 10:

SWAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 166.44%, which is quite impressive.
Looking at the last year, SWAV shows a very strong growth in Revenue. The Revenue has grown by 69.52%.
The Revenue has been growing by 209.66% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 19.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 23.58% on average over the next years. This is a very strong growth

Evaluating Health: NASDAQ:SWAV

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:SWAV scores a 8 out of 10:

An Altman-Z score of 28.47 indicates that SWAV is not in any danger for bankruptcy at the moment.
SWAV has a Altman-Z score of 28.47. This is amongst the best in the industry. SWAV outperforms 97.51% of its industry peers.
SWAV has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.19, SWAV belongs to the best of the industry, outperforming 94.03% of the companies in the same industry.
SWAV has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, SWAV is in the better half of the industry, outperforming 60.20% of the companies in the same industry.
A Current Ratio of 5.69 indicates that SWAV has no problem at all paying its short term obligations.
SWAV has a Current ratio of 5.69. This is in the better half of the industry: SWAV outperforms 68.16% of its industry peers.
A Quick Ratio of 4.54 indicates that SWAV has no problem at all paying its short term obligations.
SWAV has a Quick ratio of 4.54. This is in the better half of the industry: SWAV outperforms 66.17% of its industry peers.

Profitability Insights: NASDAQ:SWAV

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:SWAV, the assigned 6 is a significant indicator of profitability:

SWAV has a Return On Assets of 31.01%. This is amongst the best in the industry. SWAV outperforms 99.50% of its industry peers.
SWAV has a better Return On Equity (39.54%) than 99.00% of its industry peers.
SWAV has a better Return On Invested Capital (16.93%) than 97.01% of its industry peers.
Looking at the Profit Margin, with a value of 39.56%, SWAV belongs to the top of the industry, outperforming 99.00% of the companies in the same industry.
With an excellent Operating Margin value of 24.55%, SWAV belongs to the best of the industry, outperforming 96.02% of the companies in the same industry.
With an excellent Gross Margin value of 86.87%, SWAV belongs to the best of the industry, outperforming 98.01% of the companies in the same industry.
In the last couple of years the Gross Margin of SWAV has grown nicely.

How does the Setup look for NASDAQ:SWAV

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

Although the technical rating is bad, SWAV does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 210.93. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 185.88, a Stop Loss order could be placed below this zone.

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 SWAV

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

Disclaimer

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.