EXELIXIS INC (NASDAQ:EXEL) Presents a High-Growth Momentum and Technical Breakout Opportunity

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 that show forceful earnings momentum, good technical condition, and a promising chart pattern ready for a possible breakout. This method tries to find companies not just increasing at a quickened speed but also trading in a way that points to institutional buying and a favorable entry point. By demanding a minimum score across three distinct ChartMill ratings, the High Growth Momentum (HGM) Rating, the Technical (TA) Rating, and the Setup Quality Rating, the screen finds securities where fundamental force and technical chance meet.

Fundamental Growth Momentum

EXELIXIS INC (NASDAQ:EXEL) shows a strong profile for growth-oriented investors, receiving a ChartMill High Growth Momentum Rating of 6. This number shows force across several important financial measures that are vital for momentum plans, which focus on quickening earnings and sales.

• Earnings Power: The company reported trailing twelve-month (TTM) earnings per share (EPS) of $2.37, showing a large year-over-year growth of 44.5%. This shows a good underlying profitability trend.
• Recent Earnings Surges: While quarterly growth has been uneven, the latest quarter showed a notable 72.5% year-over-year rise in EPS. Also, the company has a flawless history of beating analyst EPS forecasts over the past four quarters, with an average beat of 20.7%.
• Cash Flow Generation: Free cash flow per share has grown quickly, increasing 112% over the last year to $2.91. This solid cash creation gives the company important financial room for more investment, business growth, or shareholder rewards.
• Improving Profitability: A clear pattern of margin growth is visible. The profit margin in the last reported quarter was 32.4%, a meaningful rise from 24.7% only three quarters before and more than twice the 11.4% margin from the last fiscal year. This points to better operational efficiency and pricing ability.
• Analyst Confidence: The growth picture is backed by Wall Street, with analysts raising their next-year EPS forecasts by almost 11% over the past three months.

These items together support the stock's place in a high-growth momentum screen. The mix of good absolute growth, positive surprises, margin growth, and rising estimate changes are exactly the traits the HGM rating is made to find, indicating a company with fundamental momentum that may not yet be completely seen in its price.

Technical Condition and Setup Quality

Apart from its fundamentals, EXEL shows very good technical condition, which is important for handling risk and timing entries. Based on the detailed ChartMill Technical Report, the stock gets a perfect TA Rating of 10 out of 10.

• Trend Alignment: Both the short-term and long-term trends are strongly positive, a main trait of market-leading stocks.
• Relative Strength: EXEL is doing better than 81% of all stocks in the market on a yearly basis, showing strong institutional demand.
• Moving Average Support: The stock is trading above all its main simple moving averages (20, 50, 100, and 200-day), and each of these averages is in a rising pattern, confirming the force of the uptrend.

Maybe more significant for an active investor, the stock also shows a positive setup, with a Setup Quality Rating of 7. The technical report states that EXEL is in a time of lower volatility and price consolidation after its recent rise. This activity often comes before a new directional move. The report finds a clear support area between $43.00 and $44.33, made by a meeting of trendlines and moving averages, giving a sensible zone for a protective stop-loss order. The nearness to this support, joined with the stock's overall technical condition, makes a situation where the possible gain is greater than the defined risk.

A Meeting Chance

EXELIXIS INC shows a case where a screening method made for high-growth momentum investors has found a company with good fundamental quickening. At the same time, a separate technical study confirms the stock is in a forceful uptrend and is now forming a consolidation pattern that gives a measurable risk entry point. This meeting is the main goal of the joined screen: to find companies where the story of growth is being confirmed by the activity of the chart.

For investors wanting to examine other securities that meet these strict needs of high growth momentum paired with positive technical breakout setups, the ready-made screen is available to run: High Growth Momentum Breakout Setups.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. All investing involves risk, including the potential loss of principal. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The technical setup and trade example mentioned are generated automatically and are not a guarantee of future performance.