EVERCORE INC - A (NYSE:EVR): A High-Growth Momentum Stock with Strong Technical Setup

Investment strategies that combine strong growth momentum with solid technical setups often look for stocks showing both rising earnings and positive chart patterns. One method filters for stocks with a High Growth Momentum (HGM) Rating above 4, a Technical Rating (TA) above 7, and a Setup Rating above 7. This approach targets companies with strong earnings momentum while confirming they are in a good technical position for potential gains. EVERCORE INC - A (NYSE:EVR) recently met these conditions, making it a notable option for investors using this strategy.

High Growth Momentum Fundamentals

EVERCORE INC - A (EVR) shows strong growth traits that fit the HGM Rating requirements:

• Earnings Growth: The company posted a 56.47% year-over-year EPS increase (TTM), with recent quarterly growth staying strong (33.70% in the latest quarter). Earlier quarters showed even higher growth (63.85% and 68.81% in prior periods).
• Revenue Growth: Sales rose by 23.24% (TTM), with steady quarterly improvements, including a 20.65% rise in the most recent quarter.
• Profit Margin Growth: Margins grew significantly, moving from 10.64% three quarters ago to 20.91% in the latest report, showing better operational efficiency.
• Positive Revisions & Surprises: Analysts raised next-year EPS estimates by nearly 9% over the past three months. The company has also exceeded earnings estimates in each of the last four quarters by an average of 33.38%.

These metrics highlight EVR’s ability to maintain growth momentum, a key factor in high-growth investing. The HGM Rating of 6 reflects these strengths while noting that growth, though strong, is not as rapid as some top momentum stocks.

Technical Strength & Setup Quality

EVR’s technical profile adds to its appeal, as seen in the ChartMill Technical Report:

• Strong Trend: The stock scores a 9 out of 10 on the Technical Rating, supported by both short-term and long-term upward trends. It beats 81% of its peers in the Capital Markets industry.
• Consolidation & Support: The Setup Rating of 7 points to a recent consolidation phase, with prices trading between $283.88 and $320.65 over the past month. A clear support zone near $294.00 offers a logical stop-loss level for breakout traders.
• Relative Strength: EVR ranks in the top 14% of stocks based on 12-month performance, though it has slightly trailed the S&P 500’s recent highs.

The technical setup suggests a potential breakout, with an entry point around $300.25 (just above the 10-day moving average) and a stop-loss near $294.00. The tight risk/reward ratio (2.09% downside) makes it an appealing choice for momentum traders.

Why These Criteria Matter

The mix of high growth momentum and strong technicals is key to strategies like CANSLIM and Minervini’s trend-following method. Earnings growth (HGM Rating) ensures fundamental strength, while the TA and Setup Ratings confirm the stock is in a good position for further gains. EVR’s expanding margins, upward revisions, and steady price consolidation fit well with these principles.

Find More High-Growth Breakout Candidates

For investors looking for similar opportunities, the High Growth Momentum Breakout Setups Screen offers a selected list of stocks meeting these conditions.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.