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

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

Understanding NASDAQ:SWAV's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:SWAV, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 66.95% over the past year.
• Looking at the last year, SWAV shows a very strong growth in Revenue. 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!
• The Earnings Per Share is expected to grow by 21.92% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 26.11% on average over the next years. This is a very strong growth

How do we evaluate the Health for NASDAQ:SWAV?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:SWAV has earned a 7 out of 10:

• SWAV has an Altman-Z score of 7.49. This indicates that SWAV is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 7.49, SWAV belongs to the best of the industry, outperforming 86.87% of the companies in the same industry.
• SWAV has a better Debt to FCF ratio (5.10) than 84.34% of its industry peers.
• SWAV has a Current Ratio of 14.43. This indicates that SWAV is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 14.43, SWAV belongs to the top of the industry, outperforming 95.96% of the companies in the same industry.
• 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.
• With an excellent Quick ratio value of 13.19, SWAV belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:SWAV

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:SWAV has achieved a 6:

• SWAV has a better Return On Assets (16.55%) than 96.97% of its industry peers.
• SWAV has a Return On Equity of 40.57%. This is amongst the best in the industry. SWAV outperforms 98.99% of its industry peers.
• SWAV's Return On Invested Capital of 8.95% is amongst the best of the industry. SWAV outperforms 89.90% of its industry peers.
• The Profit Margin of SWAV (36.33%) is better than 98.99% of its industry peers.
• With an excellent Operating Margin value of 23.57%, SWAV belongs to the best of the industry, outperforming 95.96% of the companies in the same industry.
• SWAV has a better Gross Margin (86.95%) than 97.47% of its industry peers.
• In the last couple of years the Gross Margin of SWAV has grown nicely.

How do we evaluate the setup for NASDAQ:SWAV?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:SWAV scores a 7 out of 10:

Besides having an excellent technical rating, SWAV also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 227.10. Right above this resistance zone may be a good entry point. Very recently a Pocket Pivot signal was observed. This is another positive 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 SWAV

Our latest full technical report of SWAV contains the most current technical analsysis.

Keep in mind

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.