Centrus Energy Corp. (NYSE:LEU) Presents a Strong Growth and Momentum Case

Investors aiming for notable capital gains frequently use a method that combines solid fundamental growth with positive technical momentum. This method focuses on finding firms with strong and quickening business measures, like earnings and revenue growth, while also displaying stock price movement that indicates a possible move out of a period of sideways trading. This two-part study tries to locate chances where better fundamentals are starting to get market attention, which may result in a continued rising price direction. One stock now matching this description is CENTRUS ENERGY CORP-CLASS A (NYSE:LEU).

The Fundamental Argument for Growth

Essentially, a good growth stock needs to display clear business enlargement. Based on the fundamental analysis report for Centrus Energy, the firm gets a Growth Rating of 7 out of 10, pointing to good basic momentum. This rating is based on a few main figures:

• Notable Recent Growth: In the last year, the firm recorded a 38.04% rise in revenue and a notable 97.98% jump in earnings per share (EPS).
• Maintainable Path: For the future, analysts forecast ongoing growth, with predicted yearly rises of 14.41% in revenue and 13.52% in EPS.
• Quickening Earnings: The report states that the EPS growth rate is getting faster, changing from a negative past pattern to a positive future view, a key turning point for growth investors.

Besides growth, the method looks for "acceptable profitability and health." Centrus gets a 6 for Profitability, helped by good returns on equity (29.18%) and assets (7.97%), which do better than most of its competitors in the Oil, Gas & Consumable Fuels industry. Its Financial Health rating of 5 is seen as middling, supported by an acceptable current ratio and a reasonable debt situation compared to industry norms. These ratings imply the firm's growth is not harming financial soundness, an important balance for lasting enlargement.

Technical Position for a Possible Move

While good fundamentals give the "reason," technical analysis assists in spotting the "timing" by studying supply and demand forces in the stock's price chart. The technical analysis report for LEU shows a positive image, giving the stock a high Technical Rating of 8 and a Setup Rating of 7.

The technical strength comes from clear, upward directions:

• Both the near-term and longer-term directions are labeled as upward.
• The stock is priced above its important 20-day, 100-day, and 200-day simple moving averages, a standard signal of positive momentum.
• It has done much better than both its industry counterparts and the wider market over the last year.

Most key for the breakout method, the report spots a specific situation. The stock has been stabilizing its recent advances, and a clear resistance area sits just above the present price, near $331.04. A clear advance above this point on high volume might indicate a new upward phase. The report also mentions a recent "Pocket Pivot" signal, which happens when the price rises on volume higher than any down volume day in the previous two weeks, hinting at buying by large investors.

Linking the Method to the Stock

This joined study is exactly what the "Strong Growth Stocks with good Technical Setup Ratings" screen aims to find. The fundamental rules make sure the firm has the driver of growth, quickening sales and earnings, along with the financial strength to maintain it. This meets the qualitative needs for growth investing, like working in a field with good possibility (here, nuclear fuel and services for a worldwide move toward clean energy).

The technical rules then work as a timing and verification tool. A high setup rating shows that this fundamentally healthy firm is at a technical point where buyer demand might be ready to beat selling pressure, possibly leading to a major price change. It tries to find times when the market's view is aligning with the firm's fundamental truth.

A Method for More Study

Centrus Energy offers an example of a stock that fits a growth-and-momentum investment method. Its good recent financial results, positive future prospects, and helpful chart formation make it a candidate deserving of more careful study for investors using this approach.

For investors wanting to locate other firms that match this particular description, you can review the pre-set "Strong Growth Stocks with good Technical Setup Ratings" screen on ChartMill.

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Disclaimer: This article is for information only and is not financial advice, a suggestion, or an offer to buy or sell any securities. The analysis uses data and reports from other parties. Investing has risk, including the chance of losing the original investment. You should do your own complete study and think about talking with a qualified financial advisor before making any investment choices.