Investors looking for high-growth momentum chances paired with positive technical patterns often search for stocks that display strong earnings improvement, positive estimate changes, and basing price behavior. This method mixes fundamental growth measures with technical study to find securities positioned for possible upward moves. The system centers on companies showing solid quarterly growth, improving profit margins, and upward analyst changes, while also offering technically good charts with defined entry and exit points. CARETRUST REIT INC (NYSE:CTRE) appears as an interesting option that fits these strict standards via its mix of improving fundamentals and positive technical placement.
Growth Momentum Fundamentals
CareTrust REIT shows several traits that high-growth momentum investors usually want. The company's earnings results display clear improvement over recent quarters, with special strength in year-over-year comparisons:
- Quarterly EPS growth rates: 45.45% (Q-3), 59.09% (Q-2), 400% (Q-1), and 66.67% in the most recent quarter
- Revenue growth has also improved: 45.55% (Q-3), 53.20% (Q-2), 63.26% (Q-1), and 71.16% in the latest quarter
- Full-year EPS growth hit 70.83% in the most recent fiscal year
- Analyst sentiment has improved with next-year EPS estimates adjusted upward by 1.91% over three months
The improvement pattern in both earnings and revenue is especially notable for momentum investors, as consecutive quarters of better growth rates often indicate a strengthening business trend. While the company's free cash flow measures show some variation, the main operating performance displays the kind of expansion that growth investors usually favor.
Technical Strength and Setup Quality
From a technical viewpoint, CareTrust REIT offers a positive image with a ChartMill Technical Rating of 9 out of 10. The stock shows good trend traits across multiple time periods:
- Both short-term and long-term trends are positive
- The stock does better than 75% of all market stocks and 87% of REIT industry peers
- All important moving averages (20, 50, 100, and 200-day) are increasing and correctly ordered
- Current price behavior displays a bull flag formation, hinting at possible continuation of the upward trend
The technical formation scores 8 out of 10, pointing to a well-formed basing pattern that may offer a good entry chance. Price movement has lately lessened as the stock trades in a smaller range, permitting clearer identification of support and resistance areas.
Trading Setup and Risk Management
The technical analysis report notes specific price points that traders could watch. The stock has set several support areas, with the strongest ranging from $33.81 to $34.72, created by a mix of trendlines and moving averages. Resistance lies from $35.94 to $36.66. This clear marking of important levels allows for accurate trade planning with set risk measures.
For investors using this system, the mix of good growth fundamentals with a technically positive formation creates an interesting opportunity. The stock's High Growth Momentum Rating of 6 mirrors its solid growth traits, while the very good technical ratings suggest the market agrees with these fundamentals through price behavior.
Finding Similar Opportunities
Investors curious about locating other stocks that fit similar standards for high growth momentum with technical breakout formations can review our pre-set screen that finds securities with Setup Ratings over 7, Technical Ratings over 7, and High Growth Momentum Ratings over 4. This screening method logically joins the fundamental growth traits wanted by momentum investors with the technical formations liked by breakout traders.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, recommendation, or solicitation to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.
