Hesai Group (NASDAQ:HSAI) Presents High Growth Momentum and Bullish Technical Setup

Hesai Group (NASDAQ:HSAI) has appeared on a specialized screen made to find stocks that fit high growth momentum investing ideas while also showing a constructive technical breakout pattern. This method uses strict fundamental growth measures with exact technical timing. The aim is to find companies showing solid and frequently speeding up earnings and sales growth, a sign of high growth momentum, and then use a technical filter to find the best entry points when the stock price is pausing after a rise, indicating a possible new upward move is near. This two-part method tries to benefit from both a company's fundamental health and good market timing.

High Growth Momentum Fundamentals

Hesai Group, a developer and manufacturer of LiDAR solutions for the automotive industry, presents a notable growth profile that supports its place on a high growth momentum screen. The company's financial numbers show the type of fast growth that momentum investors look for. The ChartMill High Growth Momentum Rating brings together different growth and momentum signs into one score, and for HSAI, this rating is a good 6. This score is influenced by several main points that are important for the strategy, as they show not only past results but possibility for ongoing upward earnings changes and positive surprises.

• Strong Earnings Growth: The company's earnings per share (EPS) growth is a main attraction. On a trailing twelve-month (TTM) basis, EPS has grown by a notable 160.9%. More significantly, the quarter-over-quarter (Q2Q) growth numbers show important momentum, with the most recent quarter reporting a 255.9% increase compared to the same quarter a year ago.
• Solid and Speeding Up Sales: Revenue growth is also strong, with TTM sales up 36.5%. The Q2Q sales growth has shown a clear pattern of getting faster, changing from 21.1% three quarters ago to 53.9% in the last reported quarter. This speeding up is a key part of the high growth momentum method, as it points to rising demand and business progress.
• Positive Surprises and Future Estimates: Hesai has surpassed EPS estimates in two of the last four quarters by an average of 12.7%, showing a capacity to beat market predictions. Looking forward, analysts forecast more fast growth, with next quarter's EPS expected to grow by 355% year-over-year.

Technical Health and Setup Quality

While solid fundamentals are necessary, the technical view gives the "when" for a possible investment. According to the detailed technical report, Hesai Group shows very good technical health. The stock receives a perfect ChartMill Technical Rating of 10 out of 10, showing a strong and maintained uptrend. This matches the momentum strategy's need of investing in market leaders.

• Strong Uptrend: The analysis confirms both long-term and short-term trends are positive. The stock has done much better than the wider market, with a one-year performance of over 523%, putting it in the top 2% of all stocks. It is now trading close to its 52-week high, a common trait of leading momentum stocks.
• Pause and Entry Signal: Beyond the solid trend, HSAI presents a favorable setup, with a Setup Quality Rating of 7. The report notes that prices have been pausing lately, with lower volatility, forming a possible bull flag pattern. This pattern often shows a break before a restart of the earlier uptrend. The analysis finds a clear support area below the current price and a specific resistance level to watch for a breakout. A recent "Pocket Pivot" signal, showing buying interest, gives more positive confirmation to the setup.

A Merging Opportunity for Momentum Investors

For investors using a high growth momentum strategy, Hesai Group represents a situation where fundamental momentum and technical timing come together. The company's sharp earnings and sales growth, along with indications of speeding up, give the fundamental reason for interest. This solid business performance is then reflected in the stock's technical chart, which shows a clear uptrend and a current pause that might offer a tactical entry point. The mix indicates that the market is acknowledging the company's growth story, and the technical setup may point to a time of getting ready for its next step up.

This analysis of Hesai Group was produced by a targeted screen. For investors interested in finding other companies that meet similar standards of high growth momentum and positive technical setups, you can view the results of this screen directly: Find More High Growth Momentum Breakout Setups.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. The information presented should not be used as the only basis for making any investment decision. Investors should do their own complete research and talk with a qualified financial advisor before making any investment decisions.