MOELIS & CO - CLASS A (NYSE:MC) - A High Growth Momentum Stock with Strong Technical Setup

MOELIS & CO - CLASS A (NYSE:MC) stands out as a high-growth momentum candidate with a solid technical setup. The company, an investment banking firm specializing in financial advisory services, has demonstrated strong earnings momentum alongside a favorable chart pattern.

Growth Momentum Highlights

• Exceptional EPS Growth: MC posted a staggering 7,500% year-over-year EPS growth (TTM), driven by strong quarterly performance. Recent quarters show EPS growth rates of 191% (Q2Q), 2,067% (Q-1), and 247% (Q-2).
• Revenue Expansion: Sales grew 45% over the past year, with recent quarterly revenue increases of 41% (Q2Q) and 104% (Q-1).
• Profit Margin Recovery: After a challenging period, profit margins rebounded to 16.4% in the latest quarter, up from 4.97% three quarters prior.
• Positive Earnings Surprises: MC beat EPS estimates in all of the last four quarters, with an average surprise of 54%.

Technical Strength & Setup

MC holds a Technical Rating of 8, reflecting a strong uptrend in both short and long-term timeframes. Key observations from the technical report include:

• Bull Flag Pattern: The stock is consolidating after a recent rally, presenting a potential entry point.
• Support Zones: Multiple support levels exist at $68.81 (daily) and $60.02 (trendline), providing downside protection.
• Low Resistance: Minimal overhead resistance suggests room for further upside if the breakout holds.
• Pocket Pivot Signal: Recent accumulation signals reinforce bullish momentum.

The Setup Rating of 7 indicates a well-defined consolidation, offering a favorable risk-reward scenario.

Trade Considerations

A possible trade setup suggests:

• Entry: Above $71.50 (breakout level).
• Stop Loss: Below $68.80 (support zone).
• Risk: ~3.78% per trade.

Our High Growth Momentum Breakout Setups Screen lists similar opportunities.

Disclaimer

This is not investment advice. Always conduct your own analysis before making trading decisions.