For investors looking for a systematic method for growth, joining fundamental momentum with technical study can be an effective plan. The process filters for stocks that show solid short-term earnings speed and favorable analyst changes, important parts of high-growth momentum investing, while also showing good price movements and helpful chart formations that indicate a possible buying opportunity. This two-part method tries to find companies where fundamental health is being acknowledged by the market, possibly preparing for a further price increase.
Hallador Energy Co (NASDAQ:HNRG) appears from such a filter, offering a situation where notable earnings momentum meets a technically healthy arrangement. The company, an Illinois Basin coal producer with an increasing electric power generation part, is showing financial measures that attract the notice of growth-oriented investors.
High Growth Momentum Fundamentals
Hallador Energy’s recent financial results display the sharp earnings increase that momentum plans look for. The company’s High Growth Momentum Rating of 6 shows firm scores across a number of important short-term growth and momentum measures.
- Sharp Quarterly EPS Increase: The newest quarter reported a striking 1,275% year-over-year rise in earnings per share (EPS). This comes after earlier quarters of 185%, 580%, and 44% growth, pointing to a strong and speeding pattern in profitability.
- Firm Sales Speed Increase: Revenue growth has also turned clearly positive, with the latest quarter showing almost 40% year-over-year growth, a marked speed increase from the 13% and 7% growth in the previous quarters.
- Favorable Surprises and Changes: The company has exceeded EPS forecasts in three of the last four quarters by an average of over 274%. Also, analysts have meaningfully lifted their earnings forecasts for the next year, with the average EPS estimate adjusted upward by more than 130% over the last three months, a firm show of belief in the short-term view.
- Growing Profitability: The profit margin in the last reported quarter grew to 16.3%, up from 8.0% and 8.5% in the two prior quarters, hinting at better operational efficiency together with top-line growth.
These elements are key to the high-growth momentum method, as they emphasize a company going through a strong, short-term shift in its business path, often caused by new agreements, helpful commodity prices, or operational gains.
Technical Health and Arrangement Quality
While fundamental momentum finds what to buy, technical study can help decide when. Hallador Energy’s chart shows a positive view on this side too, receiving a Technical Rating of 8 and an Arrangement Rating of 7 in its detailed technical report.
- Firm Long-Term Pattern: The stock is in a confirmed long-term positive pattern, trading well above its important 200-day moving average. Its 12-month result of over 52% puts it in the top 15% of all stocks, confirming its market lead.
- Pause Inside an Upward Pattern: After a firm rise, the stock has started a pause phase over the past month, trading in a set band. This halt inside an upward pattern is a typical arrangement, letting the stock absorb its increases and form a base for a possible next step up.
- Clear Support and Resistance: The technical study notes a clear support area between $19.21 and $20.04, made by a mix of moving averages and trendlines. Nearby resistance is seen close to $20.10. This set band gives a clear plan for risk control, with a logical zone for a stop-loss order below support.
- Lowered Volatility: The report mentions lowered volatility during this pause, which often comes before a meaningful directional shift. The arrangement indicates a possible breakout entry point just above the $20.11 resistance level.
This pairing, a technically sound stock in a clear upward pattern, taking a rest in a narrow band, forms the kind of "breakout arrangement" that technical traders seek, giving a defined risk point matched with the stock's recent activity.
A Meeting Opportunity
Hallador Energy shows a meeting of two strong investment forces: clear fundamental momentum in its core earnings and a technically positive chart formation. For the high-growth momentum investor, the company’s outstanding quarterly EPS increase, favorable estimate changes, and margin growth mark the needed areas. For the technically-focused trader, the stock’s firm relative strength, set upward pattern, and current pause offer a clear and workable arrangement.
This match hints the market may be in the middle of acknowledging the company’s better fundamentals, with the technical arrangement pointing to a possible near-term move from its recent trading band.
Investors curious about finding other stocks that fit this mix of high-growth momentum and technical breakout rules can review the pre-set filter here.
Disclaimer: This article is for information only and does not form investment guidance, a suggestion, or an offer or request to buy or sell any securities. The study shown is based on given data and should not be the only ground for any investment choice. Investing includes risk, including the possible loss of principal. Always do your own study and think about talking with a qualified financial advisor before making any investment choices.
