Moelis & Co - Class A (NYSE:MC): A High-Growth Stock with Strong Fundamentals and Bullish Technical Setup

Investors looking for high-growth opportunities often search for stocks that mix strong fundamental growth measures with positive technical patterns. One way to find these stocks is by screening for companies with solid earnings and revenue growth, good financial health, and profitability, while also showing technical setups that hint at possible breakouts. This two-part method helps pick stocks with both business strength and patterns that could lead to further gains.

Moelis & Co - Class A (NYSE:MC) meets these conditions, making it a notable choice for growth investors. The firm, a top independent investment bank, has shown improving financial results, and its stock charts display a positive technical structure.

Fundamental Strength Backs Growth Potential

The company’s fundamental details, as seen in ChartMill’s Fundamental Analysis Report, point to several important strengths:

• Strong Growth Measures: MC’s earnings per share (EPS) rose by 1,252.63% over the past year, while revenue grew by 42.85%. Future estimates indicate ongoing growth, with EPS expected to rise by 30.16% yearly and revenue forecast to increase by 21.69%.
• High Profitability: Despite some margin challenges, MC delivers strong returns on equity (38.39%) and invested capital (20.96%), beating 97% of its peers in the capital markets industry.
• Good Financial Health: The company has no debt, which is uncommon in its sector, leading to a high Altman-Z score (4.74), indicating low bankruptcy risk.

These fundamentals match the growth investing ideas covered in our introductory article, where rising earnings and revenue, along with efficient capital use, are key signs of long-term success.

Technical Setup Points to Breakout Chance

The Technical Analysis Report gives MC a high score of 9/10, highlighting several positive signals:

• Trend Strength: Both short-term and long-term trends are upward, with the stock trading above key moving averages (20-day, 50-day, 100-day, and 200-day SMAs).
• Consolidation Pattern: MC recently formed a bull flag, a pattern where a pullback follows a strong rise, often leading to another upward move.
• Support and Resistance: The stock has strong support near $68.81,$71.06, while the next resistance level is at $78.80. A breakout above this area could signal more gains.
• Recent Momentum: A "Pocket Pivot" signal, a price jump backed by volume, was recently spotted, suggesting institutional buying.

This technical picture supports MC’s fundamental growth story, indicating the stock could rise further if market conditions stay positive.

Why This Mix Is Important

Growth stocks with strong technical setups often draw momentum investors, as improving fundamentals can lead to continued price increases. MC’s debt-free balance sheet, high returns on capital, and earnings growth lower downside risk, while the bullish chart pattern raises the chance of near-term gains. This fits the strategy of finding companies where business performance and market sentiment align.

Find More Growth Stocks with Strong Setups

For investors seeking similar opportunities, our Strong Growth Stocks with Good Technical Setup Ratings screen offers more stocks that meet these criteria.

Disclaimer: This analysis is not investment advice. Always do your own research or consult a financial advisor before making investment decisions. Past performance does not guarantee future results.