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

SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) stands out as a high-growth momentum stock with a solid technical setup. The company, a leading payment processing solutions provider, has demonstrated strong earnings and revenue growth while maintaining positive technical trends.

Growth Momentum Highlights

• Earnings Growth: FOUR posted a 98.1% year-over-year EPS growth in the most recent quarter, following a 77.6% increase in the prior quarter. Over the past year, EPS grew by 54.5%.
• Revenue Growth: Sales rose by 19.9% in the latest quarter, with full-year revenue growth at 27.4%. The company has consistently expanded its top line, with three-year revenue growth averaging 51.3%.
• Free Cash Flow Growth: FCF per share increased by 69.6% over the past year, reflecting strong cash generation.
• Positive Revisions: Analysts have raised next-year EPS estimates by 12.4% over the last three months, signaling confidence in future performance.
• Profit Margins: While quarterly margins fluctuate, annual profit margins have expanded from 3.4% three years ago to 6.8% in the latest fiscal year.

Technical Strength & Setup

FOUR holds a perfect 10 out of 10 in ChartMill’s Technical Rating, indicating strong upward momentum. Key technical observations include:

• Trend Strength: Both short-term and long-term trends are positive, with the stock outperforming 91% of all stocks in the market.
• Support Levels: Multiple support zones exist between $103.16 and $75.71, providing downside protection.
• Consolidation Pattern: The stock has been trading in a range between $91.07 and $107.04, with a recent breakout signal. A pocket pivot (a bullish volume pattern) further strengthens the setup.
• Relative Strength: FOUR ranks in the top 9% of stocks in its industry, reflecting strong market leadership.

For a deeper technical breakdown, review the full technical report here.

Our High Growth Momentum Breakout Setups Screen identifies more stocks with similar growth and technical characteristics.

Disclaimer

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