Amentum Holdings Inc (NYSE:AMTM) Blends Strong Growth and Technical Strength for Potential Upside

Investors looking for high-growth opportunities often focus on stocks that blend strong earnings growth with positive technical patterns. The approach includes identifying companies with solid quarterly earnings growth, rising analyst estimates, and improving profit margins, key elements of the ChartMill High Growth Momentum Rating, while also confirming the stock displays a favorable technical structure. Amentum Holdings Inc (NYSE:AMTM) meets these criteria, earning a 6 on High Growth Momentum, a 7 on Technical Rating, and an 8 on Setup Quality. These scores indicate the stock is not only growing quickly but also poised for a possible upward move.

Growth Momentum: Why AMTM Stands Out

Amentum’s growth metrics match what high-growth investors typically seek:

• Earnings Growth: The company’s quarter-over-quarter EPS growth is 124.6%, with the previous quarter showing 106.2% growth. This upward trend points to strong performance.
• Revenue Growth: Sales growth for the latest quarter was 66.3%, continuing a pattern of steady top-line increases.
• Estimate Adjustments: Analysts have lifted next-year EPS estimates by 1.65% over the last three months, showing growing confidence.
• Margin Improvement: The most recent quarter’s profit margin of 28.1% is a notable rise from the prior quarter’s 11.5%, suggesting better efficiency or pricing strength.

These factors contribute to AMTM’s High Growth Momentum Rating of 6, which, while not the highest, still reflects significant progress. As explained in the ChartMill High Growth Momentum Rating methodology, scores above 5 can highlight promising options when paired with other strengths.

Technical Strength and Setup Quality

AMTM’s technical profile adds to its appeal:

• Trend Performance: The stock’s short- and long-term trends are both positive, a major reason for its Technical Rating of 7. It trades above rising 20-, 50-, and 100-day moving averages, confirming upward momentum.
• Consolidation Phase: Prices have stayed between $23.20 and $26.15 over the past month, with the stock now nearing the upper limit. This narrowing range, along with a Setup Rating of 8, hints at a possible breakout.
• Support and Resistance: The technical report notes a clear resistance area at $25.59–$25.88. A clear move above this level could lead to further gains, with support around $25.02 offering a logical exit point.

The mix of strong growth and a solid technical setup makes AMTM a potential pick for investors following strategies like CANSLIM or trend-based approaches.

Finding Similar Opportunities

For those interested in discovering more stocks that fit these criteria—strong growth momentum combined with high-quality technical setups—the High Growth Momentum Breakout Setups Screen offers a filtered list of potential candidates.

Disclaimer: This article is not investment advice. Always conduct your own research and consider risk management strategies before trading.