CNX Resources Corp (NYSE:CNX) has been identified by a focused screen made to find a particular kind of investment chance. The method joins the ideas of high-growth momentum investing with exact technical timing. The screen looks for stocks showing solid business momentum, as judged by ChartMill’s High Growth Momentum (HGM) Rating, while also showing good technical condition and a positive chart formation, measured by the Technical (TA) Rating and Setup Quality Rating. This method tries to match strong fundamental earnings speed with good technical entry spots, looking to take part in stocks ready for their next rise.
Fundamental Growth Momentum
For growth-focused investors, CNX shows a notable profile based on the measures that build its HGM Rating of 6. The firm is displaying clear financial momentum in a number of important areas:
- Earnings and Sales Growth: The company's trailing twelve-month (TTM) EPS increased by more than 40% year-over-year, while TTM revenue grew by almost 24%. More importantly, recent quarterly results display very high sales growth, with the last quarter rising about 347% against the same time last year.
- Earnings Consistency and Surprises: CNX has a full history of exceeding EPS forecasts over the past four quarters, with an average beat of 48.4%. This regular better-than-expected performance is a sign of positive earnings momentum.
- Cash Flow Generation: Free cash flow per share over the TTM period increased by a strong 93.9%, showing the company's good profitability and financial condition are becoming actual cash.
- Analyst Confidence: The average analyst forecast for next year's EPS has been raised by more than 4% in the past three months, showing increased positive feeling about the company's short-term future.
These points together explain the stock's place in a high-growth momentum screen. The HGM Rating brings these parts—growth, speed, surprises, and revisions—together to find companies where business fundamentals are speeding up. This is important for the plan because continued price gains in momentum investing are usually supported by speeding earnings and revenue.
Technical Condition and Setup Quality
While fundamental momentum gives the "why," technical study gives the "when." According to ChartMill's detailed technical report, CNX gets a good TA Rating of 9 and a Setup Rating of 8. This pairing shows a stock in a confirmed uptrend that is now forming a base, possibly preparing for a new upward move.
The technical report points out several positive factors:
- The long-term trend is positive, and the stock is trading in the high part of its 52-week range, doing better than 83% of all stocks on a yearly performance basis.
- Important moving averages (SMA 50, 100, and 200) are all increasing and placed below the current price, making a stacked support structure.
- The stock has been trading in a set range between about $39.00 and $43.62 over the past month, with recent price action forming a base in the middle of this zone. This decrease in movement often comes before a notable price change.
The high Setup Rating of 8 specifically measures this base-forming phase. It indicates the recent trading range has set clear support and resistance levels, allowing for a planned trade structure. The report finds a main support area between $39.58 and $40.47, made by a meeting of trendlines and moving averages. A clear move above the noted resistance near $42.62 could show a move out of this base, possibly continuing the larger uptrend.
Combination for Investors
CNX Resources Corp shows a situation where notable fundamental momentum meets a technically positive setup. For investors using a high-growth momentum plan, the company's good earnings growth, regular beats, and strong cash flow generation give a fundamental reason. The technical view adds to this by showing a stock that has risen notably but is now waiting in a calm way, giving a possible entry spot with set risk limits. The strategy’s central idea is that purchasing breakouts in stocks with speeding fundamentals can lead to strong trends, and CNX now meets both needs.
This screen is used each day to find new possible chances that fit these strict needs of growth, trend, and setup. You can see the newest list of passing stocks by going to the High Growth Momentum Breakout Setups Screen.
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Disclaimer: This article is for information only and is not investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and certain proprietary ratings. Investors should do their own separate research and think about their personal financial situation, risk comfort, and investment goals before making any investment choice. Past results do not show future outcomes.