For investors looking to join solid fundamental growth with good technical entry points, a multi-factor screening method can be especially useful. One practical tactic focuses on finding firms that show solid high-growth momentum traits, like speeding up earnings and sales, while also showing a technically sound chart ready for a possible breakout. This technique tries to match the fundamental causes of price gains with the technical timing of an entry, aiming to join the next phase of a continued upward move.
COMFORT SYSTEMS USA INC (NYSE:FIX) appears as a notable pick from such a screen, rating well on both fundamental momentum and technical health measures.
A Picture of High-Growth Momentum
The firm's fundamental story is a clear example of speeding up results, a key part of high-growth momentum investment. The given data shows a business operating very well:
- Outstanding Earnings Growth: The firm's trailing twelve-month (TTM) EPS has increased by more than 80% compared to the year before. Notably, recent quarterly growth shows a clear speed-up, with the newest quarter reporting year-over-year EPS growth of 101.7%, higher than the 74.6% and 76.6% from the two quarters before.
- Solid and Consistent Revenue Growth: Revenue growth is strong, with TTM sales up almost 28%. The newest quarter had sales rise 35.2% year-over-year, showing the firm's skill in turning top-line strength into even quicker bottom-line results.
- Growing Profitability: A vital measure for longevity is growing profit margins. FIX shows a clear upward path, with its quarterly profit margin rising from 7.8% three quarters ago to 11.9% in the most recent statement. This points to better operational efficiency and pricing ability.
- Reliable Performance: The firm has exceeded both EPS and revenue estimates in each of the last four quarters, with an average EPS surprise above 25%. This reliable overachievement builds trust and often results in positive analyst updates, another good signal shown in the data.
These elements together add to FIX's High Growth Momentum Rating of 8, indicating solid short-term earnings momentum and fundamental speed-up that growth investors look for.
Technical Soundness and Setup Condition
While fundamental momentum finds the "what" to buy, technical study can assist with the "when." Based on the full technical report, FIX does well here too, having a complete Technical Rating of 10.
- Market Outperformance: The stock is doing better than 95% of the total market and 92% of its Construction & Engineering industry group over the last year, a sign of relative strength.
- Strong Upward Move: All main moving averages (20, 50, 100, and 200-day) are increasing and arranged positively, with the price trading above them. The long-term move is graded as positive.
- Pause Within a Move: Maybe most important for entry timing, the stock shows a Setup Rating of 7. The report states that after a large rise, FIX has been trading in a holding range over the last month. This stop has let volatility drop and moving averages to move closer, creating a possible base for its next step.
- Clear Risk Levels: The technical study finds specific support and resistance areas. A well-marked support zone is close to $909, while immediate resistance is just above the $1,000 mark. This setup allows for planning a careful trade with a sensible entry point above resistance and a stop-loss level below support.
Matching the Tactic with the Chance
The screening idea, finding stocks with high growth momentum, good technicals, and a helpful setup, is made to find leaders during times of pause before a possible next move. FIX fits this idea. Its fundamental speed-up supplies the force for long-term gain, while its technical holding period gives a calculated entry point inside a strong existing upward move. The pairing tries to reduce risk by staying away from stocks that are too stretched while seeking gain from those showing both fundamental and technical strength.
Locating Comparable Chances
For investors wanting to use this joined growth-and-breakout way to find other possible picks, the screen used to find FIX is ready to use. You can find more results and look at current market setups via this link.
Disclaimer: This article is for information and learning only. It is not investment guidance, a suggestion, or a deal to buy or sell any security. The study is based on given data and should not be the only ground for an investment choice. Investors should do their own research and think about their personal money situation and risk comfort before making any investment. Past results do not guarantee future outcomes.
