For investors looking for a balance between solid company basics and good price movement, a mixed technical and basic method can be an effective plan. The aim is to find companies showing good core growth, earnings, and money strength, the signs of a sound business, while also showing chart formations that indicate a possible rise in price. This combination tries to match the market's direction with the inner soundness of the company, possibly marking a good time to buy. One stock now fitting these two conditions is COTERRA ENERGY INC (NYSE:CTRA).
A Sound Basic Base
The base of this plan is finding a company with a firm and increasing business. According to ChartMill's basic analysis report, Coterra Energy gets an overall basic score of 7 out of 10, with especially good scores in Growth (8) and Valuation (8). This mix is notable, as it indicates the company is getting bigger quickly while its stock price may not yet completely show that possibility.
Important Growth and Earnings Measures:
- Revenue Growth: Coterra displays notable top-line increase, with revenue growing 25.13% over the last year and an average yearly growth rate of 21.44% over recent years.
- Earnings Growth: Earnings per share (EPS) grew by 26.74% in the last year, and experts predict good future EPS growth of almost 17% each year.
- Earnings Strength: The company has high margins, with a Gross Margin of 82.81% and a Profit Margin of 23.25%, doing better than a large number of similar companies in the Oil, Gas & Consumable Fuels field. Its Earnings score is a firm 7.
Good Valuation and Money Strength:
- Low-Priced Picture: Even with this growth, Coterra seems fairly valued. Its Price/Earnings ratio of 12.05 and Price/Forward Earnings ratio of 8.88 are much lower than both the S&P 500 average and a big part of its field, adding to its Valuation score of 8.
- Sufficient Money State: With a Money Strength score of 5, the company shows a workable debt-to-equity ratio of 0.25 and a firm balance sheet in general, though its cash measures are more average. This level of strength is seen as acceptable for the screening plan, showing the company is not carrying too much debt.
These basic traits are vital for the plan because they center on the qualitative and number-based requirements for a successful growth stock: a company working in a big market (U.S. energy), showing clear growth possibility, and creating strong earnings, all while being available at a price that does not require everything to be perfect.
A Good Technical Picture
While sound basics give the "reason" for an investment, technical study can help find the "time." ChartMill's technical analysis report gives CTRA a technical score of 8, backed by a Setup Score of 8, showing the stock's chart formation may be favorable for a possible move up.
Positive Price Directions and Force:
- Both the near-term and long-term directions for CTRA are now positive, a key need for breakout plans.
- The stock is trading above its important moving averages (20, 50, and 100-day SMAs), which are all in rising arrangements, confirming the upward force.
Narrowing and Possible Rise:
- The study notes that prices have been narrowing lately inside a band, and a small drop is happening. Such times of tightening often come before a new directional move.
- A recent "Pocket Pivot" sign, a price move up on higher-than-normal volume, has been seen, which is often viewed as a mark of gathering by big investors.
- The report lists clear support areas below the present price (notably near $25.10-$25.51) and resistance levels above (near $26.45-$27.33), giving a clear plan for risk control.
This technical view is important because it tries to enter a basically sound stock as it starts to draw new buying interest and tries to pass resistance, matching market timing with business quality.
Summary
Coterra Energy offers a strong case for investors using a growth-with-force plan. Basically, the company is increasing its earnings and revenue at a good speed, keeps high earnings, and trades at a valuation that seems low compared to its growth picture. Technically, the stock is in a confirmed upward direction and is forming a tightening formation that could come before its next step up. The mix of a Growth score of 8, a Valuation score of 8, and a Setup Score of 8 indicates CTRA is a stock where good business results and helpful price movement are now matched.
Want to find other stocks that fit this mixed method? You can run the "Strong Growth Stocks with good Technical Setup Scores" screen yourself to see the newest results here.
Disclaimer: This article is for information only and does not make up money advice, a suggestion, or a deal or request to buy or sell any securities. The information given on Coterra Energy Inc. (CTRA) is based on data and reports from ChartMill.com and should not be the only base for any investment choice. Investing in stocks includes risk, including the possible loss of the main amount. Always do your own complete study and think about talking with a qualified money advisor before making any investment choices.
