NASDAQ:VICR: a strong growth stock preparing for the next leg up?.

Last update: Nov 29, 2023

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether VICOR CORP (NASDAQ:VICR) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but VICOR CORP has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Insights: NASDAQ:VICR

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:VICR has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 61.64% over the past year.
VICR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.10% yearly.
Looking at the last year, VICR shows a quite strong growth in Revenue. The Revenue has grown by 8.83% in the last year.
VICR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.87% yearly.
VICR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.26% yearly.
VICR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.62% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for NASDAQ:VICR

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:VICR has received a 8 out of 10:

VICR has an Altman-Z score of 19.93. This indicates that VICR is financially healthy and has little risk of bankruptcy at the moment.
VICR's Altman-Z score of 19.93 is amongst the best of the industry. VICR outperforms 97.67% of its industry peers.
VICR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
VICR has a Current Ratio of 8.58. This indicates that VICR is financially healthy and has no problem in meeting its short term obligations.
VICR has a Current ratio of 8.58. This is amongst the best in the industry. VICR outperforms 93.02% of its industry peers.
A Quick Ratio of 6.33 indicates that VICR has no problem at all paying its short term obligations.
The Quick ratio of VICR (6.33) is better than 88.37% of its industry peers.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:VICR, the assigned 8 is a significant indicator of profitability:

VICR has a better Return On Assets (9.07%) than 86.05% of its industry peers.
VICR has a Return On Equity of 10.03%. This is in the better half of the industry: VICR outperforms 79.07% of its industry peers.
VICR has a better Return On Invested Capital (7.66%) than 77.91% of its industry peers.
The last Return On Invested Capital (7.66%) for VICR is above the 3 year average (6.59%), which is a sign of increasing profitability.
The Profit Margin of VICR (12.69%) is better than 87.21% of its industry peers.
VICR's Profit Margin has improved in the last couple of years.
VICR's Operating Margin of 12.47% is amongst the best of the industry. VICR outperforms 81.40% of its industry peers.
In the last couple of years the Operating Margin of VICR has grown nicely.
VICR has a Gross Margin of 49.47%. This is amongst the best in the industry. VICR outperforms 97.67% of its industry peers.

How does the Setup look for NASDAQ:VICR

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:VICR currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is bad, VICR does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 36.49, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of VICR

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

Disclaimer

This article should in no way be interpreted as advice in any way. 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.