Is NASDAQ:SWAV on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Dec 7, 2023

Exploring Growth Potential: SHOCKWAVE MEDICAL INC (NASDAQ:SWAV) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and SHOCKWAVE MEDICAL INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected SHOCKWAVE MEDICAL INC on our screen for growth with base formation, suggesting it merits a closer look.

Growth Assessment of NASDAQ:SWAV

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:SWAV was assigned a score of 8 for growth:

The Earnings Per Share has grown by an impressive 66.95% over the past year.
SWAV shows a strong growth in Revenue. In the last year, the Revenue has grown by 56.19%.
The Revenue has been growing by 210.38% on average over the past years. This is a very strong growth!
SWAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.58% yearly.
Based on estimates for the next years, SWAV will show a very strong growth in Revenue. The Revenue will grow by 25.95% on average per year.

What does the Health looks like for NASDAQ:SWAV

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:SWAV has achieved a 7 out of 10:

An Altman-Z score of 6.10 indicates that SWAV is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.10, SWAV belongs to the best of the industry, outperforming 85.64% of the companies in the same industry.
SWAV's Debt to FCF ratio of 5.10 is amongst the best of the industry. SWAV outperforms 84.65% of its industry peers.
A Current Ratio of 14.43 indicates that SWAV has no problem at all paying its short term obligations.
SWAV has a better Current ratio (14.43) than 95.54% of its industry peers.
SWAV has a Quick Ratio of 13.19. This indicates that SWAV is financially healthy and has no problem in meeting its short term obligations.
SWAV has a better Quick ratio (13.19) than 95.05% of its industry peers.

Profitability Assessment of NASDAQ:SWAV

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:SWAV, the assigned 6 is noteworthy for profitability:

SWAV has a better Return On Assets (16.55%) than 97.52% of its industry peers.
With an excellent Return On Equity value of 40.57%, SWAV belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
SWAV has a better Return On Invested Capital (8.95%) than 90.59% of its industry peers.
SWAV has a better Profit Margin (36.33%) than 99.01% of its industry peers.
SWAV has a Operating Margin of 23.57%. This is amongst the best in the industry. SWAV outperforms 95.54% of its industry peers.
The Gross Margin of SWAV (86.95%) is better than 97.52% of its industry peers.
SWAV's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:SWAV

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:SWAV exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

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 very little resistance above the current price.

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

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.