Exploring NASDAQ:VERX's high growth characteristics.

Our stock screener has flagged VERTEX INC - CLASS A (NASDAQ:VERX) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:VERX for potential movement.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, VERX scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, VERX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that VERX is one of the better performing stocks in the market, outperforming 94% of all stocks. We also observe that the gains produced by VERX over the past year are nicely spread over this period.
• VERX is part of the Software industry. There are 279 other stocks in this industry. VERX outperforms 82% of them.
• VERX 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 VERX is lagging the market slightly.
• VERX is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.

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

Why is NASDAQ:VERX 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:VERX has a 7 as its setup rating:

Besides having an excellent technical rating, VERX 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 very little resistance above the current price. There is a support zone below the current price at 49.09, a Stop Loss order could be placed below this zone.

What matters for high growth investors.

• The earnings per share (EPS) of VERTEX INC - CLASS A have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 60.0% increase. This reflects the company's ability to improve its profitability over time.
• The quarterly earnings of VERTEX INC - CLASS A have shown a 60.0% 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
• VERTEX INC - CLASS A shows accelerating EPS growth: when comparing the current Q2Q growth of 60.0% to the previous year Q2Q growth of 25.0%, we see the growth rate improving.
• VERTEX INC - CLASS A has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• VERTEX INC - CLASS A has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• With a solid Return on Equity (ROE) of 11.74%, VERTEX INC - CLASS A exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• Maintaining a Debt-to-Equity ratio of 1.29, VERTEX INC - CLASS A demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• VERTEX INC - CLASS A demonstrates a balanced ownership structure, with institutional shareholders at 47.03%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• VERTEX INC - CLASS A has consistently exceeded EPS estimates 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.
• VERTEX INC - CLASS A has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 94.51 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. VERTEX INC - CLASS A is well-positioned for potential price growth opportunities.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.