AMERICAN SUPERCONDUCTOR CORP (NASDAQ:AMSC) Shows Strong Growth Momentum and Technical Breakout Potential

Investors using a high-growth momentum strategy often look for companies with strong earnings growth, solid revenue expansion, and positive changes in analyst estimates, all while displaying good technical patterns for possible upward moves. This approach blends fundamental momentum with technical analysis, making sure stocks not only have strong business performance but also trade in ways that suggest further gains. One stock fitting these conditions is AMERICAN SUPERCONDUCTOR CORP (NASDAQ:AMSC), which currently has a High Growth Momentum Rating of 7, a Technical Rating of 9, and a Setup Rating of 7.

Fundamental Growth Momentum

AMSC’s fundamentals match the high-growth momentum strategy well, as shown by several important metrics:

• Earnings Growth: The company’s trailing twelve-month (TTM) EPS growth is 425%, with the latest quarter reporting a 262.5% year-over-year rise. While the next quarter’s estimates predict a drop (-57.2%), the past three quarters have seen increasing growth (140%, 433.3%, and 262.5% in order).
• Revenue Expansion: Sales growth remains strong, with TTM revenue up 53% and the most recent quarter showing a 79.6% year-over-year gain. Sequential quarters have also displayed steady performance (58.6%, 56%, and 60.2%).
• Profitability Improvements: After years of low or negative margins, AMSC has become profitable, with a trailing net margin of 2.7% and the latest quarter at 1.8%. Free cash flow has jumped by 2,048.7% over the past year, highlighting better operational efficiency.
• Positive Surprises & Revisions: The company has exceeded EPS estimates in all of the last four quarters by an average of 338%, while revenue surprises have averaged 5.2%. Analyst revenue estimates for the next year have risen by 4% over the past three months.

These factors give AMSC its High Growth Momentum Rating of 7, showing strong but not perfect growth traits—consistent with the strategy’s focus on accelerating earnings and sales trends.

Technical Strength & Setup Quality

From a technical standpoint, AMSC has a Technical Rating of 9, reflecting a clear upward trend across different timeframes. Key points from the technical report include:

• Trend Strength: Both short-term and long-term trends are upward, with the stock recently reaching a 52-week high. It beats 92% of its peers in the Electrical Equipment industry.
• Consolidation & Breakout Potential: The stock has traded between $35.59 and $44.85 over the past month, now nearing the upper limit. The Setup Rating of 7 indicates a good consolidation pattern, with lower volatility and a recent Pocket Pivot signal—a bullish volume-based indicator.
• Support & Risk Management: The technical analysis suggests an entry point around $44.86 (just above the 10-day high) with a stop-loss at $38.79, capping potential losses at 13.5%.

Why This Combination Matters

High-growth momentum strategies, like those based on CANSLIM or Minervini methods, focus on both earnings growth and technical strength. Stocks like AMSC, which display:

• Strong earnings and sales growth,
• Positive estimate changes and surprises,
• Solid relative performance and breakout patterns,
  are ideal for momentum investors. The technical setup ensures the stock isn’t overbought, while the growth metrics confirm the business’s upward trend.

Find More High-Growth Breakout Candidates

For investors looking for similar opportunities, our High Growth Momentum Breakout Setups Screen identifies stocks with strong growth, technical ratings, and consolidation patterns.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management strategies before making investment decisions.