For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-layered screening method can be very useful. One approach uses filters to find stocks showing three main traits: a high ChartMill Technical Rating (above 7) to verify a solid uptrend, a high ChartMill Setup Rating (above 7) to find a good consolidation pattern ready for a breakout, and a firm ChartMill High Growth Momentum Rating (above 4) to confirm the company is showing strong earnings and sales momentum. This method tries to find companies where speeding business fundamentals are meeting a technically good chart, which may point to a good time for entry.
Why CareTrust REIT Matches the High Growth Momentum Profile
CareTrust REIT Inc. (NYSE:CTRE) comes from this screen as a notable candidate. The company’s High Growth Momentum Rating of 7 shows major fundamental speed, a central idea of momentum investing. This number is based on outstanding recent results across important financial measures.
- Very High Earnings Growth: The company has reported very high year-over-year earnings per share (EPS) growth in recent quarters, including 400% two quarters ago and 56.25% in the latest quarter. Over the past twelve months, EPS has increased by 89%.
- Strong Revenue Growth: This earnings rise is backed by solid revenue growth. Sales grew by 116.8% year-over-year last quarter and have shown steady speed over the three quarters before.
- Wider Margins and Positive Surprises: The fundamental picture is made stronger by major profit margin widening, going from 42.1% in the earlier fiscal year to 67.1% in the last reported year. The company has also exceeded analyst EPS estimates in two of the past four quarters by an average of 6.5%.
These items together show a company in a strong upswing in its business activities, which is exactly what the High Growth Momentum Rating means to find.
Technical Soundness and Setup Condition
A good fundamental story is most effective when paired with a positive price chart. Based on CareTrust REIT’s detailed technical report, the stock gets a Technical Rating of 7. This number shows the stock is in a verified uptrend, backed by several points:
- The long-term trend is positive, with the stock priced above its important rising moving averages (50-day, 100-day, and 200-day).
- It has been a market leader over the last year, doing better than 74% of all stocks.
- In its industry (Diversified REITs), it does better than 81% of similar companies.
Maybe more important for timing an entry is the stock’s Setup Rating, which is also 7. This rating finds times of consolidation inside an uptrend, where volatility lessens and a new base forms. The analysis states that CTRE has been trading in a range between about $35.65 and $40.41 over the past month and is now consolidating in the upper part of this range. A clear resistance area is noted just above the current price, starting at $40.63. The report indicates a breakout above this resistance could act as a possible entry signal, with a set support area below giving a sensible place for a stop-loss order. This pairing of a good underlying trend (Technical Rating) with a clear, usable pattern (Setup Rating) is the core of the breakout setup method.
Conclusion
CareTrust REIT shows a situation where high-growth fundamental momentum and positive technical action seem to be coming together. The company’s very high earnings and sales growth, margin widening, and positive surprises support its high momentum score. At the same time, its chart displays a stock in a steady long-term uptrend, now pausing to form a base near highs, a typical setup for a possible continuation move. For investors using a growth momentum method with attention on technical entry points, CTRE stands for the kind of candidate this multi-layered screen is made to find.
This exact pairing of ratings can be a useful starting place for more study. Investors wanting to look at other stocks that now fit these rules for high growth momentum and technical breakout setups can run the screen themselves here.
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 described screening methods, which have limits. Investors should do their own full research and think about their personal money situation and risk comfort before making any investment choices. Past results do not show future outcomes.