SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) – A High-Growth Momentum Stock with Strong Technical Setup

SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) stands out as a high-growth momentum candidate with a solid technical setup. The company, a leading provider of payment processing solutions, has demonstrated strong earnings and revenue growth while presenting a favorable chart pattern for potential breakout traders.

Fundamental Strengths Supporting High Growth Momentum

• Earnings Growth: FOUR reported a 54.5% year-over-year increase in EPS (TTM), with recent quarterly EPS growth exceeding 98%.
• Revenue Expansion: Sales grew 27.4% over the past year, with consistent double-digit growth in recent quarters.
• Profit Margin Improvement: The company’s profit margin expanded to 6.8% in the last fiscal year, up from 3.4% two years prior.
• Positive Revisions: Analysts have raised next-year EPS estimates by 16.4% over the past three months, reflecting improving sentiment.
• Free Cash Flow Growth: FCF per share surged nearly 70% year-over-year, indicating strong cash generation.

Technical Strength and Setup Quality

FOUR holds a Technical Rating of 7 and a Setup Rating of 8, signaling both a healthy trend and a consolidation pattern that may precede a breakout. Key observations from the technical report include:

• Bull Flag Formation: The stock is forming a bullish continuation pattern after a strong upward move.
• Support and Resistance: A key support zone lies between $87.24 and $89.91, while resistance sits near $90.99 to $92.14. A breakout above this level could signal further upside.
• Relative Strength: FOUR outperforms 80% of stocks in the Financial Services sector, indicating strong market leadership.
• Volume Trends: Recent pullbacks have occurred on lower volume, a positive sign for continuation.

Why This Setup Matters for Traders

High-growth stocks with strong technical setups often attract momentum investors. FOUR’s combination of accelerating earnings, expanding margins, and a well-defined chart pattern makes it a candidate for both growth and breakout strategies.

Our High Growth Momentum Breakout Setups Screen identifies similar opportunities daily.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making trading decisions.