Exploring high growth characteristics of GENEDX HOLDINGS CORP (NASDAQ:WGS).

Our stockscreener has identified a possible breakout setup on GENEDX HOLDINGS CORP (NASDAQ:WGS). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:WGS for potential opportunities.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall WGS gets a technical rating of 9 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that WGS is one of the better performing stocks in the market, outperforming 99% of all stocks. On top of that, WGS also shows a nice and consistent pattern of rising prices.
• WGS is part of the Health Care Providers & Services industry. There are 105 other stocks in this industry. WGS outperforms 99% of them.
• WGS is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so WGS slightly outperforms the market at the moment.
• In the last month WGS has a been trading in the 72.18 - 105.00 range, which is quite wide. It is currently trading near the high of this range.

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

How does the Setup look for WGS

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. WGS scores a 7 out of 10:

Besides having an excellent technical rating, WGS also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 101.17. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 93.16, a Stop Loss order could be placed below this zone.

Why we can consider WGS a High Growth Stock.

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. WGS was assigned a score of 7 for growth:

Earnings Momentum

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), WGS highlights its ability to generate increasing profitability, showcasing a 190.0% growth.
• The earnings per share (EPS) growth of WGS is accelerating: the current Q2Q growth of 190.0% is above the previous quarter Q2Q growth of 105.0%. Earnings momentum and acceleration are key for high growth systems.
• EPS acceleration happened 3 quarters in a row.
• The 1-year EPS growth of WGS (104.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The q2q revenue growth of 66.57% of WGS highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• Accelerating Sales growth for WGS: the current Q2Q growth of 66.57% exceeds the previous quarter Q2Q growth of 44.23%.
• WGS has achieved significant 1-year revenue growth of 50.79%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• WGS has consistently surpassed EPS estimates 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.

Profitability & Financial Strength

• With a favorable trend in its operating margin over the past year, WGS demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• WGS 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 Debt/Equity ratio of 0.29, WGS appears to have a manageable debt load relative to its assets.

Market Strength & Institutional Confidence

• WGS exhibits a favorable ownership structure, with an institutional shareholder ownership of 89.07%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• The Relative Strength (RS) of WGS has consistently been strong, with a current 99.81 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

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

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.