Moelis & Co (NYSE:MC) Presents a High-Growth Momentum Breakout Case

For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-factor screening method can be a useful instrument. One approach finds securities that show both high earnings momentum and good chart patterns. This tactic searches for companies with a solid ChartMill High Growth Momentum Rating (HGM), which notes quickening earnings and sales, widening margins, and good analyst changes. At the same time, it needs a high ChartMill Technical Rating (TA) to verify the stock is in a good uptrend and a high ChartMill Setup Rating to find times of pause that might come before a new move upward. This combination tries to locate high-growth companies at a time of possible technical breakout.

MOELIS & CO - CLASS A (NYSE:MC) comes from such a screen, presenting a case for high-growth momentum investors to study further. The independent investment bank, which advises on mergers, restructurings, and capital markets transactions, shows a notable mix of very strong recent profitability and a chart indicating a new upward move may be forming.

High Growth Momentum Fundamentals

The center of the momentum case for Moelis is in its sharp earnings recovery and growth. The company’s ChartMill High Growth Momentum Rating of 6 shows force across several important criteria needed for this tactic, which focuses on short-term earnings speed and positive surprises.

• Strong Earnings Growth: The most notable numbers are in earnings per share (EPS). The company has reported very high year-over-year EPS growth in recent quarters, including 204.55% in the last quarter. Even more notable is the trailing twelve-month (TTM) EPS growth of 439.29%, marking a forceful shift in profitability.
• Steady Earnings Surprises: Moelis has exceeded analyst EPS estimates in each of the last four quarters, with an average surprise of 50.79%. This steady overperformance is a key momentum part, as it frequently results in good revisions and fresh investor attention.
• Good Cash Flow Generation: Backing the earnings story, free cash flow per share has increased by 211.56% over the past year, showing the earnings quality and the company’s financial soundness.
• Firm Revenue Path: While not as strong as EPS, revenue growth stays good, with TTM revenue up 51.19% and the last quarter showing 30.37% year-over-year growth.

These measures match directly with the High Growth Momentum Rating’s goal of finding companies with quickening operational results. The mix of very high TTM EPS growth, steady positive surprises, and good cash flow growth forms a firm fundamental base for momentum investors.

Technical Condition and Setup Quality

While fundamentals give the "why," technical study gives the "when." According to the detailed ChartMill Technical Report, Moelis shows both the trend force and the exact pattern that breakout tactics look for.

The stock gets a Technical Rating of 7, described by a good long-term and short-term trend. It is trading above important moving averages (20, 50, 100, and 200-day), which are all moving up, a clear sign of continued bullish momentum. This verifies the stock is in a technically sound uptrend, meeting the first need for a possible breakout candidate.

Maybe more important for timing an entry, the Setup Rating is also 7. The report states that Moelis has been trading in a pause range over the past month and shows lower volatility, which are signs of a stock gathering force for its next move. The study finds a clear resistance area just above the current price, near $71.12 to $72.09. A clear move above this area could mark a breakout from the pause, giving a specific entry point. The report also notes a recent "Pocket Pivot" signal, a volume-based sign often linked with institutional buying during a stop in the trend.

A Joining Opportunity

For investors using a high-growth momentum tactic, Moelis presents a joining opportunity. The fundamental view is of a company seeing a forceful earnings return, a key mover for momentum. Technically, the stock is not just moving up unevenly; it is pausing its recent gains in an organized way, giving a visible pattern with specific risk levels. This mix, very strong growth fundamentals meeting a helpful technical setup, is exactly what the screening method is made to find.

It is important to state that the next quarter's EPS estimate points to a possible drop year-over-year, which may slow the near-term growth story and is a point for investors to watch. Also, while the stock's trends are good, its relative performance next to the wider market is noted as weaker, a part to balance against its strong absolute performance.

Find More Possible Setups

The screen that found MOELIS & CO is made to sort the market for similar joining opportunities. Investors wanting to find other stocks that meet these conditions of high growth momentum, good technical condition, and usable setup patterns can view the current results via this High Growth Momentum Breakout Setups Screen.

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Disclaimer: This article is for information only and does not form investment advice, a suggestion, or an offer to buy or sell any security. The study 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 financial position, risk comfort, and talk with a qualified financial advisor before making any investment decisions. Past results are not a guide for future results.