HALLADOR ENERGY CO (NASDAQ:HNRG) offers an interesting situation for investors using a high growth momentum plan joined with technical breakout review. This method centers on finding companies showing solid earnings momentum and quickening growth measures while also displaying positive technical formations that indicate possible upward price action. The system assesses both basic growth traits and technical chart formations to find stocks positioned for continued strong performance.
High Growth Momentum Fundamentals
Hallador Energy's basic profile shows several traits that high growth momentum investors usually look for. The company shows outstanding earnings momentum over several periods, with especially solid recent quarterly results.
Important growth measures contain:
- 258% EPS growth over the trailing twelve months
- 1,275% EPS growth in the last quarter compared to the same quarter last year
- 580% EPS growth two quarters before year-over-year
- 39.8% sales growth in the most recent quarter
- Three straight quarters of positive earnings surprises averaging 274.7%
The company has also displayed major improvement in profitability, with the last quarter's profit margin increasing to 16.3% compared to 8% in the prior quarter. Analyst view seems positive too, with next year's EPS estimates adjusted upward by 46% over the past three months. These quickening growth rates and growing margins are key parts of the high growth momentum method, as they show better business basics that could push continued stock price gains.
Technical Strength and Setup Quality
From a technical view, Hallador Energy shows solid traits that match its basic story. The stock now has a Technical Rating of 7 out of 10, showing good technical health with both long-term and short-term patterns supporting more possible upside.
Technical points contain:
- Long-term pattern stays positive while short-term pattern shows neutrality
- Trading in the upper part of its 52-week range
- Doing better than 84% of stocks in the Independent Power and Renewable Electricity Producers industry
- Strong relative strength reading of 92.64
- All main moving averages (20, 50, 100, and 200-day) moving upward
The setup quality is especially notable with a rating of 8 out of 10, indicating the stock is forming a consolidation formation that might come before a major move. Recent price action has shown lower volatility, and the stock is trading near the bottom of its recent range, possibly giving a good risk-reward view for entry.
Support and Resistance Analysis
The technical review shows clear support and resistance points that give direct guidance for possible trade management. The stock has set several support areas, with the most important ranging from $19.11 to $19.46, made by a mix of trendlines and moving averages across multiple periods. Resistance is seen at $21.63 from a weekly horizontal line.
The setup indicates a possible entry above $21.64 with a stop loss below $19.10, showing a managed risk of about 11.7%. For investors using position sizing based on portfolio risk, this means about 8.5% of capital allocation for a 1% total portfolio risk. The existence of institutional interest, as measured by the Effective Volume indicator, gives more confirmation of the setup's quality.
Investment Considerations
While Hallador Energy shows strong growth momentum and technical traits, investors should think about several elements. The company works in the energy sector, which can face commodity price changes and regulatory shifts. The wide trading range over the past month ($18.88 to $24.70) shows major price movement, though the present consolidation near range lows may offer a chance.
The mix of outstanding earnings growth, positive analyst changes, growing profit margins, and a positive technical setup makes HNRG worth review for growth momentum investors. The stock's technical rating of 7 and setup rating of 8 indicate both basic strength and a possibly good entry point.
For investors wanting to find comparable chances, more screening results are available through the High Growth Momentum Breakout Setups Screen, which finds stocks meeting similar standards for both growth momentum and technical setup quality.
Disclaimer: This review is for information only and does not make up investment advice, recommendation, or request to buy or sell any securities. Investors should do their own research and talk with a qualified financial advisor before making investment choices. Past performance does not show future results.
