For investors looking for an active method to choose equities, blending fundamental and technical analysis can be an effective plan. The objective is to find firms with solid basic business progress—increases in sales and earnings—that are also seeing favorable movement in their share price, frequently shown by technical breakout formations. This technique tries to find shares that are both sound in their basics and set for growth, and are also becoming preferred in the market, possibly marking the start of a lasting rise. A recent filter for "Strong Growth Stocks with good Technical Setup Ratings" found one example: FTAI Aviation Ltd (NASDAQ:FTAI).
Fundamental Growth Driver
At its center, this plan focuses on firms showing outstanding and lasting growth. FTAI Aviation’s basic profile shows a business in a forceful growth stage. The company’s ChartMill Growth Rating is a solid 8 out of 10, supported by notable recent and expected results.
- Strong Recent Growth: In the last year, FTAI’s revenue rose by almost 25%, while its Earnings Per Share (EPS) increased by over 63%. This shows the company is growing its sales and doing so with profit.
- Positive Future View: Experts predict this progress will carry on, with EPS expected to grow by an average of 32% each year in the near future. Such a high growth pace is a main feature of a typical growth stock, as it implies the company is effectively using its market chances.
- Profitability Aids Growth: While the total profitability rating is a middle 6, important margins are clear positives. The company’s Operating Margin of 31.12% and Profit Margin of 19.30% are in the top 10% of similar firms (Trading Companies & Distributors). This high profit creates the money to put back into more growth, an important quality for lasting progress.
Technical Movement and Breakout Chance
A solid basic story is strengthened when joined with good price movement. FTAI’s technical view is notably strong, receiving a top ChartMill Technical Rating of 10 out of 10. The share is showing the type of movement and formation that growth investors want.
- Strong Uptrend: Both the long-term and short-term trends are clearly positive. The share is trading well above its main moving averages (50-day, 100-day, and 200-day), which are all moving up—a clear sign of continued positive movement.
- Market Beating Performance: Over the past year, FTAI has greatly beaten the wider market, with a rise of over 120%. This matches the growth investing idea of looking for shares that move faster than their industry and the total market.
- Pause Near Highs: The technical review notes a "good setup pattern," with the share pausing in a range after its large increase. It is now trading near the top of this range, just below a set resistance area. A clear move above this resistance could show the next part of the breakout, giving a possible entry chance for movement-focused plans. This setup is exactly what the filter method looks for: a basically solid share taking a break before a possible resumption of its rise.
Price and Points to Think About
The filter rules also need "acceptable" health and profitability, which FTAI meets with ratings of 5 and 6. It is key to see, though, that the share’s strong growth comes with a high price. Its Price-to-Earnings (P/E) ratio is much higher than both the industry and S&P 500 averages, leading to a low Valuation rating of 2. This is normal for high-growth shares, as investors agree to pay more now for expected fast earnings growth later. The company also has a large amount of debt, a point balanced by very good liquidity measures, including a Current Ratio of 5.84.
For investors focused on income with growth, FTAI gives an attractive dividend yield of over 8%, backed by a maintainable payout ratio.
An Example for Blended Review
FTAI Aviation shows an example of the blended basic and technical method. It shows the number-based signs of a growth stock—growing revenue and earnings—while also showing the quality-based market approval of a strong price trend and a good technical setup. The share’s path shows the type of results growth investors aim for: major price increase driven by business growth.
This review of FTAI Aviation came from a specific filter for strong growth shares with positive technical setups. You can look at other shares that now fit similar rules by checking the Strong Growth Stock Technical Setups screen.
Disclaimer: This article is for information only and is not financial advice, a suggestion, or an offer or request to buy or sell any securities. The information given is based on supplied data and should not be the only reason for an investment choice. Investors should do their own separate study and talk with a qualified financial advisor before making any investment choices. Past results do not show future outcomes. Investing has risk, including the possible loss of the original amount.
