Should you consider VERACYTE INC (NASDAQ:VCYT) for high growth investing?

VERACYTE INC (NASDAQ:VCYT) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:VCYT.

Analyzing the Technical Aspects

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 9 out of 10 to VCYT. Both in the recent history as in the last year, VCYT has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• VCYT is part of the Biotechnology industry. There are 568 other stocks in this industry. VCYT outperforms 86% of them.
• VCYT is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so VCYT is lagging the market slightly.
• Looking at the yearly performance, VCYT did better than 89% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
• In the last month VCYT has a been trading in the 36.38 - 46.00 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Why is NASDAQ:VCYT a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:VCYT has a 7 as its setup rating:

VCYT has an excellent technical rating and also presents a decent setup pattern. 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 support zone below the current price at 42.23, a Stop Loss order could be placed below this zone.

Why NASDAQ:VCYT may be interesting for high growth investors.

• VERACYTE INC has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 146.0% increase. This indicates improving financial performance and the company's effective management of its operations.
• VERACYTE INC has achieved significant quarter-to-quarter (Q2Q) revenue growth of 28.58%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• 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.
• Over the past 3 months, analysts have adjusted their EPS Estimate for VERACYTE INC with a 822.0% change. This highlights the evolving outlook on the company's EPS potential.
• 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 shows accelerating EPS growth: when comparing the current Q2Q growth of 146.0% to the previous year Q2Q growth of -242.0%, we see the growth rate improving.
• VERACYTE INC has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With positive growth in its free cash flow (FCF) over the past year, VERACYTE INC showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• 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 exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• VERACYTE INC has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 89.76 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. VERACYTE INC is well-positioned for potential price growth opportunities.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

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.