COMMSCOPE HOLDING CO INC (NASDAQ:COMM) Screens as a High-Growth Momentum Trend Leader

CommScope Holding Co Inc (NASDAQ:COMM) has recently appeared through a screening method that joins Mark Minervini's strict Trend Template with a High Growth Momentum (HGM) filter. This two-part method seeks to find companies that are not only in strong technical uptrends but also show the basic traits of high-growth businesses. The plan focuses on stocks showing better price performance, solid earnings momentum, and sales growth, all while trading inside a specific, low-risk entry pattern.

Meeting the Minervini Trend Template

A main idea of the Minervini plan is to trade in the direction of the current trend, concentrating only on stocks showing solid and continued upward momentum. COMM's present technical setup matches well with the standards detailed in the Trend Template.

• Price Above Key Moving Averages: The stock is trading above its rising 50-day, 150-day, and 200-day simple moving averages. This arrangement confirms strength across short, intermediate, and long-term timeframes.
• Moving Average Arrangement: The 50-day SMA ($16.08) is placed above both the 150-day SMA ($11.33) and the 200-day SMA ($9.74), while the 150-day SMA also trades above the 200-day SMA. This ordered positive arrangement is a sign of a good Stage 2 advance.
• Proximity to Highs: COMM's present price is trading within 10% of its 52-week high of $18.05, meeting the template's need to be within 25% of the high. This shows the stock is displaying leadership and strength instead of lagging.
• Significant Advance from Lows: Having moved up over 450% from its 52-week low of $2.94, the stock greatly passes the template's minimum need of a 30% advance, indicating strong momentum.
• Better Relative Strength: With a ChartMill Relative Strength rating of 98.27, COMM is doing better than almost all other stocks in the market. Minervini states that true market leaders almost always have high relative strength, usually above 70 and preferably in the 80s or 90s.

Qualifying as a High-Growth Candidate

Beyond an interesting chart, the Minervini method needs strong basic finances, especially fast earnings and sales growth. COMM's recent financial performance shows the type of strong momentum that high-growth investors look for.

• Fast Earnings Growth: The company has reported very high year-over-year earnings per share (EPS) growth.
  • The most recent quarter showed a 1,340% increase.
  • The trailing twelve-month (TTM) EPS growth is at 626%.
• Steady Earnings Surprises: COMM has beaten analyst EPS estimates in all of the last four quarters, with an average surprise of 208%. Positive earnings surprises frequently work as a trigger, drawing institutional buying interest.
• Solid Sales Momentum: Revenue growth is also very strong, with the last quarter growing over 50% year-over-year. The TTM revenue growth is a good 35.6%.
• Strong Analyst Confidence: The outlook stays positive, with analysts greatly raising their estimates. The average EPS estimate for the next year has been changed upward by 80% over the last three months, showing increasing confidence in the company's future profitability.

Technical Health and Setup Evaluation

The provided technical report gives COMM a top-level rating of 10 out of 10, reflecting very good technical health. The long-term and short-term trends are both called positive, and the stock is making new 52-week highs, confirming its leadership position.

While the technical rating is very good, the setup rating is a 6, showing that the stock is pausing after its recent advance. The report finds a key support area around $14.95. For traders using a Minervini-style method, a possible low-risk entry could be on a move above the near-term resistance, with a stop-loss placed below the found support level to control risk. A close look at these support and resistance levels, together with a sample trade setup, is available in the full COMM technical report.

Find More High-Growth Momentum Candidates

COMM is the type of stock that appears when joining strict technical and basic growth filters. Investors searching for similar chances can use the same screen to find other possible high-growth leaders showing strong technical trends.

Click here to view more stocks that currently match the High Growth Momentum + Trend Template screen.

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