Investors looking to join solid fundamental growth with positive technical patterns often search for a combination of specific measures. One technique involves filtering for stocks that show a high growth momentum profile, paired with sound technical health and a clear, usable chart setup. This method tries to spot companies not just increasing their earnings and sales at a quickening rate but also trading in a way that hints at a possible breakout from a period of consolidation. The aim is to locate chances where good business momentum matches helpful price movement.
FIRST BUSEY CORP (NASDAQ:BUSE) appears from such a filter, offering a case for examination by growth-focused investors. The company, a financial holding company offering banking, wealth management, and payment technology services, displays a mix of quickening fundamentals and a technically good chart formation.
Fundamental Growth Momentum
The ChartMill High Growth Momentum Rating for BUSE is 6, pointing to a firm growth profile. This rating combines different parts of earnings and sales momentum, which are important for the high growth investment approach. A closer look at the given data shows the reasons for this score:
- Strong Sales Acceleration: The company has shown notable year-over-year sales growth in recent quarters, with numbers of 71.4%, 65.7%, and 70.4% over the last three reported periods. This quickening is a main idea of growth momentum investing, as it hints at growing business activity and market position.
- Consistent EPS Growth: Earnings per share growth has also been solid, with year-over-year rises of 28.3%, 10.3%, and 26.0% in the most recent quarters. While the projected growth for the next quarter is slower, the recent pattern shows strong momentum.
- Positive Estimate Revisions: Analysts have increased their average revenue estimate for the next year by 0.58% over the last three months. Positive revisions often come before future earnings surprises and are a sign of continued momentum.
- Expanding Profitability: The profit margin in the last reported quarter was 28.05%, a gain from 26.47% the quarter before and 23.86% two quarters earlier. A growing profit margin shows the company is not only increasing revenue but is doing so more effectively, which can greatly improve bottom-line growth.
These factors, accelerating sales, solid earnings, positive revisions, and margin growth, are exactly what the High Growth Momentum Rating tries to identify, making BUSE a candidate deserving of fundamental study.
Technical Health and Setup Quality
Apart from the fundamentals, the stock's price movement gives a helpful background. According to the detailed technical report, BUSE gets a Technical Rating of 7 and a Setup Rating of 8.
The Technical Rating of 7 shows a stock in a good uptrend. The report states that the long-term trend stays positive, with the stock doing better than 75% of all other stocks over the past year and trading in the higher part of its 52-week range. It is trading above important rising moving averages (20, 50, 100, and 200-day), which is a typical signal of continued bullish momentum.
More significant for timing an entry, the Setup Rating of 8 is especially high. This score measures the quality of a consolidation formation, hinting the stock is moving within a set range and may be getting ready for its next directional move. The study shows that BUSE has been trading in a range between about $23.82 and $25.82 over the past month and is now near the top of this range. The price movement has lessened, and a clear support area is found between $24.38 and $25.03. For a trader, this formation allows for a set plan: a possible breakout above the recent range high could indicate the next move up, with a stop-loss order placed below the identified support area to control risk.
A Joining Opportunity
The attraction of FIRST BUSEY CORP in this situation rests in the matching of its growth driver with its chart formation. The fundamental data gives a view of a company seeing major sales growth and gaining profitability. At the same time, the technical study hints the market is absorbing these gains through a close consolidation, gathering pressure for a possible extension of the uptrend. This joining is what filters mixing High Growth Momentum, Technical, and Setup Ratings are made to find, companies with solid business momentum that are also technically set for a move.
For investors wanting to study similar chances that meet these strict needs of growth momentum and technical setup, more results can be seen by using the High Growth Momentum Breakout Setups screen.
Disclaimer: This article is for information only and does not make up investment advice, a suggestion, or an offer to buy or sell any securities. The study is based on given data and should not be the only ground for an investment choice. Investors should do their own study and talk with a qualified financial advisor before making any investment decisions.