ANALOG DEVICES INC (NASDAQ:ADI) Combines High-Growth Speed with Technical Breakout Setup

For investors looking for a systematic way to find possible market leaders, a dual method that looks at fundamental growth speed and technical breakout formations can be a useful instrument. This process filters for companies showing solid, quickening earnings and sales expansion, a sign of high-growth speed investing, while also displaying sound technical condition and a helpful price pattern, indicating a possible entry moment. The aim is to locate stocks where strong fundamental forces match with positive chart formations, hinting at the chance of a continued upward movement.

ANALOG DEVICES INC (NASDAQ:ADI) appears as a candidate that fits these strict conditions, offering a situation for both growth and technical investors to study more carefully.

Fundamental Growth Speed Examined

The center of a high-growth speed method is in finding companies with solid and often quickening financial results. Analog Devices displays several important measures that add to its firm High Growth Momentum Rating.

• Earnings and Sales Quickening: The company's latest quarterly results show notable year-over-year expansion, with EPS rising 35.3% and revenue growing by 25.9%. This comes after a period of solid prior-quarter expansion (29.7% and 24.6%, respectively), showing positive speed.
• Steady Earnings Surprises: ADI has surpassed analyst EPS forecasts in each of the past four quarters, with an average surprise of 4.2%. This steady better-than-expected performance implies management performance may be beating market predictions.
• Solid Cash Flow Creation: Free Cash Flow per share has expanded by a notable 37% over the past year, highlighting the quality of earnings and the company's capacity to produce cash from its activities.
• Analyst Trust: Forward forecasts are increasing, with the average EPS forecast for the next year adjusted upward by 5.6% over the last three months. Such positive adjustments frequently come before future price gains as predictions are updated.

While the expansion rates may not hit the highest levels seen in some technology-only names, ADI shows a mix of considerable growth, dependability, and gaining profitability that is highly regarded in speed filters. The widening of its profit margin in the most recent quarter to over 25% further strengthens the quality of this growth path.

Technical Health and Pattern Condition

A solid fundamental narrative is most effective when paired with a helpful technical view. According to the detailed technical report, Analog Devices performs well here too, receiving a complete Technical Rating of 10 out of 10.

• Clear Uptrend: Both the near-term and long-term trends are graded as positive, a main base for any speed-based method. The stock is trading above all its main moving averages (20, 50, 100, and 200-day), which are themselves in rising arrangements.
• Market Outperformance: With a relative strength percentile above 85, ADI has notably beaten most of the market over the past year. It is also trading near a 52-week high, a common trait of leading stocks.
• Helpful Pattern: Maybe most importantly for timing, the stock shows a reasonable setup pattern with a Setup Rating of 7. The analysis states that prices have been forming a pattern recently, with lower volatility, creating a possible base. A "Pocket Pivot" signal, a volume-based sign of accumulation, was also recently seen, adding a positive point.
• Clear Support and Resistance: The technical report points out a clear support area between $276.23 and $279.31, made by a combination of moving averages and trendlines. This gives a logical zone for a stop-loss order. Nearby resistance is noted just above current prices, around $283.40.

This technical picture answers the important question of "when." While the stock is in a strong uptrend (the "which"), it is presently in a pause within that trend, giving a possible entry moment with a specified risk level below the support area.

A Meeting of Elements

The situation for Analog Devices within this method is made on meeting. The fundamental measures, quickening sales, solid earnings beats, increasing cash flow, and positive forecast adjustments, supply the force for possible expansion. These are exactly the conditions high-growth speed investors filter for to find companies with operational speed.

At the same time, the technical study confirms that this fundamental health is being acknowledged by the market. The strong uptrend, high relative strength, and current pattern formation imply the stock is not overbought and may be getting ready for its next step upward. This match is the core of the combined filter: looking for fundamentals that indicate growth and a chart that indicates a chance to join in it.

For investors wanting to examine other stocks that fit this mix of high-growth speed and technical breakout patterns, the filter that found ADI is ready for more study. You can find more possible choices by checking the High Growth Momentum Breakout Setups Screen.

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Disclaimer: This article is for information only and does not form investment guidance, a suggestion, or an offer to buy or sell any security. The study is based on given data and should not be the only base for an investment choice. Investors should do their own study and think about their personal financial situation and risk comfort before making any investment. Past results are not a guide for future outcomes.