For investors looking to join solid fundamental momentum with well-timed technical entry points, a multi-layered screening method can be very useful. One such technique involves selecting for stocks that show strong earnings and sales growth, qualities measured by a High Growth Momentum (HGM) Rating, while also showing positive price trends and orderly consolidation patterns, as measured by Technical (TA) and Setup Ratings. This method tries to find companies that are not only expanding quickly but are also set up technically for a possible extension of their upward move. A recent search for securities with an HGM Rating above 4, a TA Rating above 7, and a Setup Rating above 7 found AMER SPORTS INC (NYSE:AS) as a candidate for more detailed review.
Fundamental Growth Momentum
Amer Sports, the global sporting goods company with brands like Salomon, Arc’teryx, and Wilson, shows several traits that investors focused on high-growth momentum look for. The company’s financial numbers show a marked increase in profitability, a main part of the HGM Rating.
- Strong Earnings Growth: The company’s trailing twelve-month (TTM) EPS has increased by a notable 336.8% year-over-year. Recent quarterly performance is also strong, with EPS for the last reported quarter rising 135.7% compared to the same period last year.
- Steady Sales Growth: Top-line growth is firm and consistent, with TTM revenue up 25.9%. Quarterly sales growth has been regularly in the mid-to-high 20% range for the past several quarters, pointing to continued demand.
- Wider Margins and Positive Surprises: The profit margin in the last quarter was 8.15%, a large increase from 1.47% in the prior quarter, a sign of better operational efficiency. Also, Amer Sports has exceeded EPS estimates in three of the last four quarters by an average of 54.1%, showing a habit of beating expectations.
- Analyst Sentiment: The average estimate for next year’s EPS has been raised by 9.5% over the last three months, showing increasing analyst confidence about the company’s future earnings.
These factors, solid growth rates, widening margins, positive surprises, and upward revisions, are exactly what the HGM Rating is built to measure, and they together lead to Amer Sports’ rating of 6 in this group.
Technical Health and Setup Quality
While fundamental momentum finds what to buy, technical analysis can help decide when to buy. According to the detailed ChartMill Technical Report, Amer Sports shows a positive technical view.
The stock gets a Technical Rating of 7, showing it is in a confirmed upward trend. The report states that while the short-term trend is currently neutral, the long-term trend stays positive. Notably, AS performs better than 90% of its peers in the Textiles, Apparel & Luxury Goods industry and has performed better than 82% of all stocks over the past year. This relative performance is a sign of market leadership.
More important for entry timing, the stock has a Setup Rating of 8. This high score indicates the stock is in a healthy consolidation. Prices have been moving in a set range between about $35.54 and $40.00 over the past month, letting it absorb its earlier gains. The technical report finds a clear support area between $35.86 and $37.61, made from a mix of key moving averages and trendlines. The existence of this support gives a sensible zone for a stop-loss order, setting the risk on a possible trade. A recent pocket pivot signal, where the stock moved up on higher volume, adds another positive point, suggesting buying interest.
A Merging Opportunity
The merging of Amer Sports’ fundamental and technical profiles is what makes it a notable candidate for the outlined method. The high Growth Momentum Rating verifies the company is in a strong earnings growth period, a main force for continued price gains. At the same time, the solid Technical and Setup Ratings show the stock’s price movement is sound and it is forming a clear pattern after a large rise.
This situation lets investors use a structured method: the fundamental strength gives the investment reason, while the technical consolidation provides a specific entry point above resistance (listed at $38.70) with a controlled risk point below the found support. This approach tries to match the momentum of the business with the momentum of the stock price.
For investors trying to find other stocks that fit this particular mix of high-growth fundamentals and ready technical situations, you can run the search yourself via this link: High Growth Momentum Breakout Setups.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data provided and should not be the sole basis for an investment decision. Investors should conduct their own due diligence and consider their individual financial circumstances before making any investment. Past performance is not indicative of future results.
