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

Last update: Jan 1, 2024

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

Looking at the Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:SWAV boasts a 8 out of 10:

SWAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.95%, which is quite impressive.
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 21.92% yearly.
The Revenue is expected to grow by 26.11% on average over the next years. This is a very strong growth

Evaluating Health: 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:

SWAV has an Altman-Z score of 6.56. This indicates that SWAV is financially healthy and has little risk of bankruptcy at the moment.
SWAV has a Altman-Z score of 6.56. This is amongst the best in the industry. SWAV outperforms 83.58% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 5.10, SWAV belongs to the top of the industry, outperforming 84.58% of the companies in the same industry.
A Current Ratio of 14.43 indicates that SWAV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 14.43, SWAV belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
A Quick Ratio of 13.19 indicates that SWAV has no problem at all paying its short term obligations.
SWAV has a Quick ratio of 13.19. This is amongst the best in the industry. SWAV outperforms 95.02% of its industry peers.

Profitability Assessment of NASDAQ:SWAV

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:SWAV has earned a 6 out of 10:

SWAV's Return On Assets of 16.55% is amongst the best of the industry. SWAV outperforms 97.01% of its industry peers.
SWAV has a Return On Equity of 40.57%. This is amongst the best in the industry. SWAV outperforms 99.00% of its industry peers.
SWAV has a Return On Invested Capital of 8.95%. This is amongst the best in the industry. SWAV outperforms 90.05% of its industry peers.
SWAV has a Profit Margin of 36.33%. This is amongst the best in the industry. SWAV outperforms 99.00% of its industry peers.
The Operating Margin of SWAV (23.57%) is better than 96.02% of its industry peers.
With an excellent Gross Margin value of 86.95%, SWAV belongs to the best of the industry, outperforming 97.51% 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

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:SWAV currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is bad, SWAV does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 191.09. Right above this resistance zone may be a good entry point.

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

Keep in mind

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.