For investors looking to join solid fundamental growth with positive technical patterns, a multi-layered screening method can be very useful. One approach is finding stocks that display high growth momentum, sound technical condition, and a visible arrangement for a possible price move higher. This tactic joins the ideas of growth investing, which centers on firms with quickening earnings and sales, with technical study that finds good entry points. The aim is to locate securities where strong fundamental forces are meeting with a helpful price chart, indicating the momentum might be ready to persist.
AMCOR PLC (NYSE:AMCR) appears as a candidate from a screen that searches for a ChartMill High Growth Momentum (HGM) Rating above 4, a Technical Rating above 7, and a Setup Rating above 7. As a global head in making sustainable packaging, Amcor works in flexible and rigid packaging areas, providing for the food, beverage, healthcare, and personal care fields.
Looking at the Growth Momentum
The High Growth Momentum Rating brings together several important growth and momentum measures into one score. For AMCR, the rating of 6 shows a firm, though not maximum, growth picture. The score is led by some very strong recent performance figures, weighed with zones of slower growth or decrease.
- Very Strong Recent EPS Growth: The most notable numbers are the year-over-year earnings per share (EPS) growth rates for recent quarters. The firm has stated:
- EPS growth of 434.2% for the last quarter.
- EPS growth of 495.7% for the prior quarter.
- EPS growth of 373.9% for the quarter before that. This series shows forceful, maintained earnings speed in the short term, a central idea of momentum investing.
- Sound Sales Increase: Backing the earnings rise is solid top-line growth. Revenue grew by 68.1% in the last quarter and 71.3% in the prior quarter, showing the earnings growth is not only from reducing costs but is backed by growing business.
- Analyst Positive View: A main part of the HGM rating is analyst estimate changes. The average guess for next year's EPS has been moved higher by over 402% in the last three months, showing increasing belief in the firm's short-term profit path.
- Background and Points: It is useful to see that this very strong growth comes after a time of reduction, with EPS falling in the two earlier fiscal years. Also, the profit margin has become smaller in the most recent quarter compared to the one before, and free cash flow growth has been a little negative over the past year. These different signs inside the larger positive pattern clarify the rating of 6 instead of a top score, noting for investors that full study is required beyond the main growth numbers.
Judging Technical Condition and Setup Value
While growth measures give the fundamental "why," technical study helps find the "when." As per the detailed technical report, AMCR shows an interesting chart view.
Technical Condition (Rating: 8) The stock gets a high technical rating, showing firm and matching patterns across several time periods.
- Both the short-term and long-term patterns are rated as good.
- The stock is priced above its important moving averages (20, 50, 100, and 200-day), which are all in a rising order.
- It is priced in the higher part of its 52-week range, showing relative condition.
Setup Value (Rating: 7) A high setup rating implies the stock is settling in a manner that could come before a new price move. The study shows:
- Prices have been settling lately, with lower price swings.
- A clear resistance area is seen just above the present price at $50.59.
- The report notes activity from big participants (as seen by Effective Volume), which can be a supporting sign.
- The setup outline suggests a possible trade plan with an entry point just above the $50.59 resistance and a stop-loss set below nearby support, giving a clear risk/reward situation.
This pairing is central for the tactic: the high technical rating confirms the stock is in a sound upward pattern, while the setup rating finds a possible lower-risk entry point inside that pattern, steering clear of the error of buying after a large, long price increase.
A Tactic in Use
The screening reason that found AMCR is made to locate stocks where these parts come together. The High Growth Momentum filter looks for the fundamental push of speeding business results. The Technical Rating filter makes sure the stock is already in a market-approved upward pattern. Lastly, the Setup Rating filter looks for those in-pattern stocks that are taking a short break, giving a planned chance for entry. AMCR's picture, with its very high quarterly EPS growth, positive analyst estimate changes, firm technical patterns, and clear settling shape, acts as a real example of what this joined method tries to find.
For investors wanting to look into other securities that now meet these rules of high growth momentum joined with positive technical breakout arrangements, you can see the newest results using the High Growth Momentum Breakout Setups Screen.
Disclaimer: This article is for information and example only and is not meant as investment guidance. The study is based on given data and particular screening rules. It does not form a suggestion to buy, sell, or keep any security. Investors should do their own complete research, think about their personal money situation and risk comfort, and talk with a skilled financial advisor before making any investment choices. Past results are not a guide for future results.
