Closer Look – STAA

STAA daily chart courtesy of MarketSmith

Quarterly Earnings – STAA per share earnings increased to 7 cents from 2 cents in the year ago quarter. STAA has posted triple digit EPS growth for 3 of the last 4 quarters, including EPS growth of +250% in the most recent quarter.

Quarterly Revenue – STAA revenue growth increased 26% in the most recent quarter following revenue growth of 35%, 55% and 33% in the previous 3 quarters.

Annual earnings growth – STAA is estimated to make a profit of 22 cents this year versus a profit of 28 cents last year. EPS estimates for 2020 are on the rise and currently sitting at 67 cents, a potential 205% increase year over year.

Changing the way we see the world – STAA designs, manufactures and sells implantable lenses for the eye, along with delivery systems for implantation of the lenses into the eye. STAA offers minimally invasive and foldable intra-ocular lenses. The company’s products are sold directly through its sales representatives and independent distributors in over 60 countries. STAA was founded in 1982 and is headquartered in Monrovia, California.

Accumulation – STAA has an up/down volume ratio of .9 as shares climb the right side of a potential stage 3 double bottom base. STAA has an Accumulation/Distribution rating of B- and mutual fund participation has increased to 341 funds from 161 nearly a year ago. 

Running mates – STAA is in the Medical – Products group which is currently ranked number 26 out of 197 industry groups. Strong peers in the group include TNDM, CDNA and BLFS.

Technical notes: Stage 3 base and $51.30 standard pivot. Early entry shakeout+3 opportunity with $38.77 pivot. Pocket pivot on 3/1 on reclaim of 40 week MA. Layered MA support 4-5% below as price has been climbing higher off daily 10MA/21EMA. The 10 week MA has now turned upward. Strong prior uptrend out of stage 2 base of +52%. Watch for RS line into new highs ahead of potential breakout. Short float at 3.5% with nearly 4 days to cover. The driver here is annual EPS growth watch estimate revisions closely.

STAA weekly chart courtesy of MarketSmith

Disclaimer: None of the presented content represents individual investment advice to buy or sell securities and the information provided is solely for informational, educational and entertainment purposes. Author has a long position in STAA at the time of this writing.