Hesai Group (NASDAQ:HSAI) Shows High-Growth Momentum and Bull Flag Setup

For investors looking for a mix of strong earnings momentum and timely technical patterns, a specific screen can be a useful tool. By selecting for stocks with a firm ChartMill High Growth Momentum Rating, a good Technical Rating, and a high Setup Quality Rating, the aim is to find companies that are both seeing quickening fundamental growth and are set for a possible price move. This method combines the central ideas of growth investing with careful technical entry points, seeking to take part in stocks as their business momentum changes into market results.

Hesai Group (NASDAQ:HSAI) comes from this type of screen, showing a profile that calls for more examination from growth-focused investors. The Chinese LiDAR maker, which supplies important sensing technology for advanced driver assistance systems and self-driving cars, displays a number of traits liked by momentum approaches.

High Growth Momentum Fundamentals

Hesai’s fundamental view is noted for very fast earnings growth, a main reason for its good High Growth Momentum Rating of 6. The company is showing the type of forceful, quickening profitability that growth investors look for.

• Very Fast Earnings Per Share (EPS) Growth: The latest quarter reported a striking year-over-year EPS growth of 688.2%. This comes after earlier quarters of 255.9% and 111.1% growth, pointing to a forceful and quickening trend in profitability.
• Firm Sales Increase: Revenue growth stays strong, with the last quarter showing a 47.5% rise year-over-year. This matches the earlier quarters, which saw growth of 53.9% and 46.2%.
• Positive Analyst Changes: Maybe one of the most clear signals for momentum investors is analyst opinion. Over the last three months, the average EPS estimate for Hesai’s next fiscal year has been moved higher by over 38%, hinting at increasing belief in the company’s short-term profit path.
• Earnings Beats: The company has topped consensus EPS estimates in two of the last four quarters, with an average beat of 12.7%, supporting the positive momentum story.

These measures together show a picture of a company in a high-growth stage, where business execution is causing important bottom-line increase. This fundamental quickening is exactly what the High Growth Momentum Rating tries to identify, as such momentum often comes before continued market gains.

Technical Health and Setup Quality

While firm fundamentals give the "why," technical analysis gives the "when." Hesai’s technical profile, shown in its full ChartMill Technical Report, adds to its growth story with a hopeful chart formation.

The stock gets a Technical Rating of 7, showing bettering market condition. The short-term trend is good, and the stock is doing better than 76% of similar companies in the Automobile Components industry over the past year. More key for timing an entry, it has a Setup Rating of 7. This score shows the stock is moving in a narrow range in a helpful pattern, lowering movement and gathering force for a possible next step.

• The Setup: The analysis points out that HSAI is now forming a bull flag pattern, a usually good continuation shape that happens after a firm rise.
• Important Levels: A clear resistance area is between $23.19 and $23.56. A clear move above this zone could mark the next rise. On the other side, a firm support area is between $21.74 and $22.51, giving a sensible zone for a protective stop-loss order.
• Market Setting: It is good to note that while Hesai’s long-term trend is seen as neutral and it trades in the middle of its 52-week range, the bettering short-term trend and close-range movement are good signals, especially if the wider market (where the S&P 500 trends are good) stays helpful.

A Coming Together Chance

Hesai Group shows a case where fundamental momentum and technical readiness seem to be coming together. For the high-growth momentum investor, the company’s exceptional EPS growth, quickening sales, and good analyst changes mark the important points for earnings-driven choice. At the same time, the technical setup gives a clear plan for entry and risk control, going past just buying a good story to strategically placing for its possible market outcome.

This mix is the core of the screening plan: to find companies where forceful business momentum is being matched by a stock chart that is forming tightly and getting ready for a new rise.

Interested in finding more stocks that match this high-growth, move-ready profile? You can run the screen yourself and see the newest results here: High Growth Momentum Breakout Setups Screen.

Disclaimer: This article is for information only and does not make up investment advice, a suggestion, or an offer to buy or sell any security. The analysis is based on given data and should not be the only base for an investment choice. Investors should do their own full research, think about their money situation and risk comfort, and talk with a qualified financial advisor before making any investment choices. Past results are not a guide for future results.