HARROW INC (NASDAQ:HROW) Emerges as a High-Growth Momentum Stock with Strong Technical Setup

For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-layered screening method can be very useful. One approach is to search for stocks that show forceful earnings momentum, good technical condition, and a favorable price pattern ready for a possible move. This method tries to find companies that are not just increasing at a quickened speed but are also trading in a way that points to institutional buying and less selling pressure, preparing for a potential upward move.

HARROW INC (NASDAQ:HROW) appears from such a screen, offering a situation that deserves more attention from growth-focused investors. The company, a specialty pharmaceutical business centered on ophthalmology, has shown marked operational improvement.

Fundamental Growth Momentum

The center of the high-growth momentum case for Harrow depends on its recent financial speed-up. The given numbers show a company finding its pace, especially in earnings.

• Forceful Earnings Growth: The latest quarter's earnings per share (EPS) jumped 283% against the same time last year. This comes after a prior quarter where EPS increased 172%. While growth rates two quarters back were negative, the strong recovery and continued high growth in the most recent periods are important momentum signs.
• Good Sales Growth: Revenue growth stays solid, with the last quarter showing a 45% year-over-year rise. This top-line increase gives a firm base for the bottom-line growth.
• Positive Estimate Beats: Over the past four quarters, Harrow has exceeded EPS estimates twice, with an average beat of over 222%. This steady outperformance versus forecasts is a key part of momentum investing, as it frequently results in positive analyst changes and upward price movement.
• Getting Better Cash Flow: The company's free cash flow production has gotten much better, with growth of 87% over the last year, approaching profitability on a cash basis.

These points add to its ChartMill High Growth Momentum Rating of 6. This rating combines short-term earnings momentum, speed-up, surprises, and changes. For momentum investors, these are not only past data points; they are signs that the company's business path is getting better quicker than the market expected, which can be a main force for stock price gains.

Technical Condition and Setup Quality

While fundamental momentum finds the "what" to buy, technical study can help with the "when." Harrow's technical picture is very good, as explained in its full technical report.

• Top Technical Rating: Harrow receives a first-class ChartMill Technical Rating of 10 out of 10. This score shows very good condition across many time periods.
  • Both its short-term and long-term trends are scored as positive.
  • The stock is trading higher than all its main moving averages (20, 50, 100, and 200-day), which are all in rising arrangements.
  • Its relative strength is high, meaning it has done better than 87% of all stocks over the past year.
• Good Setup Pattern: Maybe more critical for an investor seeking an entry, the stock has a Setup Rating of 8. This shows the price movement has been settling in a fairly narrow band lately after a prior rise. Such periods of settling let a stock absorb its gains and can form a base for the next step up.
  • The technical report mentions a recent "Pocket Pivot" signal, a volume-based sign pointing to buying by larger investors without a sharp price jump.
  • It finds a clear support area below the present price (around $48.94) and notes almost no close resistance above, indicating a path with less hindrance could be upward if the stock moves out of its present band.

This pairing is strong: a fundamentally speeding-up company trading in a technically good uptrend, now waiting in a settling period that gives a clear risk point. The high Setup Rating indicates this wait may be close to ending.

Finding Like Situations

The screening process that found Harrow, looking for stocks with a High Growth Momentum Rating over 4, a Technical Rating over 7, and a Setup Rating over 7, is made to find more situations that match this exact picture. It balances the need for earnings speed-up with the rule of positive price movement.

For investors wanting to use this screen to find other possible choices, you can view and run the live screen here: High Growth Momentum Breakout Setups Screen.

,

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis presented is based on data provided and should not be the sole basis for an investment decision. Investors should conduct their own thorough research, consider their individual financial circumstances, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.