Hesai Group (NASDAQ:HSAI) – A High-Growth Momentum Stock with Strong Technical Setup

Hesai Group (NASDAQ:HSAI) has emerged as a standout candidate for high-growth momentum investors, combining strong earnings momentum with a favorable technical breakout pattern. The company, a developer of LiDAR solutions for automotive applications, scores well on both fundamental growth metrics and technical strength.

Growth Momentum Highlights

• Earnings Growth: HSAI reported a 126% year-over-year increase in EPS (TTM), with recent quarterly EPS growth exceeding 111%. The next quarter is expected to see a 223% jump compared to the same period last year.
• Revenue Growth: Sales grew 24.2% over the past year, with recent quarterly revenue expanding by 46.3%. Analysts forecast a 51.3% increase in the next quarter.
• Positive Revisions: EPS estimates for the next year have been revised upward by 60.7% over the past three months, signaling improving sentiment.
• Profitability Trends: The company has shown margin expansion, with a trailing profit margin improvement in recent quarters.

Technical Strength & Setup

Hesai Group holds a perfect Technical Rating of 10, reflecting strong price momentum and relative strength. Key observations from the technical report include:

• Uptrend Confirmation: Both short-term and long-term trends are positive, with the stock outperforming 98% of its peers in the Automobile Components industry.
• Consolidation Pattern: The stock has been trading in a range between $17.18 and $22.77, with reduced volatility, indicating a potential breakout opportunity.
• Support & Resistance: Key support lies near $18.65-$18.86, while resistance is seen around $20.96. A breakout above $20.97 could signal further upside.
• Institutional Interest: Large players have shown increased buying activity, reinforcing the bullish setup.

Why This Matters for Investors

Hesai Group’s combination of accelerating earnings, upward estimate revisions, and a strong technical base makes it a compelling watch for momentum-focused strategies. The stock’s recent consolidation near resistance suggests a potential breakout if buying pressure continues.

For more high-growth momentum stocks with strong technical setups, check our High Growth Momentum Breakout Screen.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.