NYSE:UTI, a strong growth stock, setting up for a breakout.

In this article, we'll take a closer look at UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) as a potential candidate for growth investing. While it's important for investors to conduct their own research, UNIVERSAL TECHNICAL INSTITUT has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

What does the Growth looks like for NYSE:UTI

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. NYSE:UTI has received a 8 out of 10:

• UTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 289.47%, which is quite impressive.
• Measured over the past years, UTI shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.35% on average per year.
• The Revenue has grown by 20.63% in the past year. This is a very strong growth!
• Measured over the past years, UTI shows a quite strong growth in Revenue. The Revenue has been growing by 17.19% on average per year.
• The Earnings Per Share is expected to grow by 26.37% on average over the next years. This is a very strong growth
• Based on estimates for the next years, UTI will show a quite strong growth in Revenue. The Revenue will grow by 9.47% on average per year.

Exploring NYSE:UTI's Health

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 NYSE:UTI, the assigned 5 reflects its health status:

• UTI has an Altman-Z score of 3.09. This indicates that UTI is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.09, UTI is doing good in the industry, outperforming 74.60% of the companies in the same industry.
• UTI has a debt to FCF ratio of 2.04. This is a good value and a sign of high solvency as UTI would need 2.04 years to pay back of all of its debts.
• UTI has a better Debt to FCF ratio (2.04) than 77.78% of its industry peers.
• A Debt/Equity ratio of 0.47 indicates that UTI is not too dependend on debt financing.
• Although UTI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Looking at the Profitability

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. NYSE:UTI has earned a 7 out of 10:

• UTI has a better Return On Assets (5.11%) than 73.02% of its industry peers.
• With a decent Return On Equity value of 14.62%, UTI is doing good in the industry, outperforming 76.19% of the companies in the same industry.
• With a decent Return On Invested Capital value of 8.10%, UTI is doing good in the industry, outperforming 79.37% of the companies in the same industry.
• The last Return On Invested Capital (8.10%) for UTI is above the 3 year average (5.11%), which is a sign of increasing profitability.
• UTI has a better Profit Margin (5.19%) than 63.49% of its industry peers.
• In the last couple of years the Profit Margin of UTI has grown nicely.
• With a decent Operating Margin value of 8.35%, UTI is doing good in the industry, outperforming 60.32% of the companies in the same industry.
• In the last couple of years the Operating Margin of UTI has grown nicely.
• The Gross Margin of UTI (54.28%) is better than 68.25% of its industry peers.

Why is NYSE:UTI a setup?

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. NYSE:UTI scores a 10 out of 10:

Besides having an excellent technical rating, UTI also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 26.20. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.71, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for UTI in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

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

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

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

Disclaimer

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.