Is NASDAQ:VCYT a Fit for high Growth Investing Strategies?

A possible breakout setup was detected on VERACYTE INC (NASDAQ:VCYT) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:VCYT.

What is the technical picture of NASDAQ:VCYT telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 9 out of 10 to VCYT. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, VCYT is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• VCYT is one of the better performing stocks in the Biotechnology industry, it outperforms 83% of 565 stocks in the same industry.
• VCYT is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month VCYT has a been trading in the 32.84 - 41.43 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, VCYT did better than 87% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

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

Looking at the Setup

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:VCYT exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

VCYT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 36.74, a Stop Loss order could be placed below this zone.

Looking into the high growth metrics of VERACYTE INC

• The quarterly earnings of VERACYTE INC have shown a 146.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• VERACYTE INC has demonstrated strong q2q revenue growth of 28.58%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• With notable 1-year revenue growth of 23.95%, VERACYTE INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• Analysts' average next Quarter EPS Estimate for VERACYTE INC has witnessed a 569.0% change in the last 3 months, underscoring the dynamic nature of market sentiment towards the company's EPS prospects.
• The recent financial report of VERACYTE INC demonstrates a 146.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• The earnings per share (EPS) growth of VERACYTE INC are accelerating: the current Q2Q growth of 146.0% is above the previous year Q2Q growth of -242.0%. Earnings momentum and acceleration are key for high growth systems.
• The operating margin of VERACYTE INC has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With a favorable trend in its free cash flow (FCF) over the past year, VERACYTE INC demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• With a Debt-to-Equity ratio at 0.0, VERACYTE INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• VERACYTE INC has surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.
• The Relative Strength (RS) of VERACYTE INC has been consistently solid, with a current 87.56 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. VERACYTE INC exhibits strong prospects for further price appreciation.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

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.