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.
