VERACYTE INC (NASDAQ:VCYT) stands out as a growth opportunity that won't break the bank.

VERACYTE INC (NASDAQ:VCYT) was identified as an affordable growth stock by our stock screener. NASDAQ:VCYT is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Evaluating Growth: NASDAQ:VCYT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:VCYT has achieved a 7 out of 10:

• VCYT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.25%, which is quite impressive.
• The Revenue has grown by 23.46% in the past year. This is a very strong growth!
• The Revenue has been growing by 29.93% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, VCYT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.82% on average per year.
• The Revenue is expected to grow by 8.73% on average over the next years. This is quite good.

Valuation Assessment of NASDAQ:VCYT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:VCYT scores a 5 out of 10:

• Based on the Price/Earnings ratio, VCYT is valued cheaply inside the industry as 93.23% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, VCYT is valued cheaper than 91.27% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 93.94% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, VCYT is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
• The decent profitability rating of VCYT may justify a higher PE ratio.
• VCYT's earnings are expected to grow with 33.51% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:VCYT

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:VCYT has achieved a 6 out of 10:

• VCYT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• VCYT has a Current Ratio of 4.73. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 4.46 indicates that VCYT has no problem at all paying its short term obligations.

Profitability Insights: NASDAQ:VCYT

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:VCYT has earned a 6 out of 10:

• VCYT's Return On Assets of 1.86% is amongst the best of the industry. VCYT outperforms 93.23% of its industry peers.
• With an excellent Return On Equity value of 2.05%, VCYT belongs to the best of the industry, outperforming 93.76% of the companies in the same industry.
• VCYT has a better Return On Invested Capital (1.26%) than 93.23% of its industry peers.
• VCYT has a better Profit Margin (5.41%) than 93.94% of its industry peers.
• The Operating Margin of VCYT (4.38%) is better than 93.94% of its industry peers.
• VCYT's Gross Margin of 67.54% is amongst the best of the industry. VCYT outperforms 81.64% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

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.