California Resources Corp (NYSE:CRC): A High Growth Momentum Stock with Strong Technical Patterns

Finding High Growth Momentum Stocks with Strong Technical Patterns: A Look at California Resources Corp (NYSE:CRC)

Investors looking for high-growth opportunities often focus on stocks that show strong earnings momentum along with favorable technical signals. One way to find these stocks is by filtering for those with a High Growth Momentum (HGM) Rating above 4, a Technical Rating (TA) above 7, and a Setup Rating above 7. These filters help highlight companies with improving fundamentals, such as earnings growth, margin improvements, and positive analyst updates, while also displaying patterns that may indicate a coming price move.

California Resources Corp (NYSE:CRC) matches these conditions, making it a stock worth reviewing for investors focused on growth. Below, we explain why CRC meets these standards and what sets it apart from both a fundamental and technical viewpoint.

Fundamental Growth Momentum

CRC’s High Growth Momentum Rating of 6 shows strong growth factors, backed by these metrics:

• Earnings Growth:

  • TTM EPS Growth (1Y): +26.3%
  • Q2Q EPS Growth (Most Recent Quarter): +42.7%
  • Next Quarter EPS Growth (Estimate): +53.0%
  • Positive Earnings Surprises: The company has exceeded EPS estimates in 2 of the last 4 quarters, with an average surprise of +6.9%.

• Revenue Growth:

  • TTM Revenue Growth (1Y): +63.9%
  • Q2Q Revenue Growth (Most Recent Quarter): +100.9%
  • Next Quarter Revenue Growth (Estimate): +54.2%

• Analyst Sentiment:

  • EPS Revisions (Next Year): Up +17.0% over the last 3 months, showing rising expectations.

While CRC’s free cash flow growth has dropped (-11.7% YoY), its strong sales and earnings momentum, along with upward revisions, point to short-term growth potential—a key factor for growth-focused investors.

Technical Strength and Setup Quality

From a technical perspective, CRC has a TA Rating of 7 and a Setup Rating of 8, indicating a favorable consolidation phase with potential for an upward move. Key points from the technical report include:

• Trend Structure:

  • Long-Term Trend: Positive
  • Short-Term Trend: Neutral (suggesting a pause before possible continuation)
  • Relative Strength: Better than 70% of its industry peers (Oil, Gas & Consumable Fuels)

• Support and Resistance Levels:

  • Support Zone: $46.39–$46.81 (formed by moving averages and trendlines)
  • Resistance Zone: $50.52–$51.27 (a move above this could signal further gains)

• Consolidation Pattern:

  • Prices have stayed between $46.09 and $53.11 over the past month, with volatility decreasing—a common setup for a potential price move.
  • The stock is currently near the lower end of this range, offering a possible entry point with clear risk levels.

Why This Combination Matters for Investors

High-growth momentum strategies, like those used in CANSLIM or Minervini methods, focus on stocks with improving earnings and strong price trends. CRC’s fundamentals fit this approach, while its technical setup suggests a lower-risk entry opportunity. A move above resistance could confirm further upside, while a stop-loss below support helps manage downside risk.

Find More High-Growth Breakout Candidates

CRC is one example from our screen for high-growth momentum stocks with strong technical setups. For more potential opportunities, see the full results here: High Growth Momentum Breakout Setups Screen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making investment decisions.