For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-factor screening method can be an effective instrument. By selecting for stocks that show high earnings momentum, sound technical condition, and a positive chart pattern, the aim is to find companies that are not only expanding quickly but are also set for a possible short-term price rise. This approach agrees with tactics that focus on both earnings speed and careful technical entry, aiming to take part in a stock’s momentum stage.
MOELIS & CO - CLASS A (NYSE:MC) results from such a filter, offering a situation where strong fundamental growth measures meet a positive technical arrangement.
Fundamental Growth Momentum
The heart of a high-growth momentum plan is finding companies with speeding business results. Moelis & Co. shows a number of important traits that add to its firm High Growth Momentum Rating.
- Outstanding Earnings Growth: The company has reported very high year-over-year EPS growth. Trailing twelve-month EPS grew more than 439%, and recent quarterly growth numbers have regularly been very high, including 204.5% in the most recent quarter.
- Firm Revenue Increase: Top-line growth backs the earnings story, with TTM revenue rising 51.2%. Recent quarterly sales growth has been solid, including a 30.4% rise last quarter.
- Positive Surprises and Revisions: The company has exceeded EPS estimates in each of the past four quarters, with an average surprise of 50.8%. Also, analysts have been increasing their estimates, with the average EPS estimate for the next year moved up by 5.7% over the past three months, a signal of rising confidence in future performance.
- Cash Flow Creation: Free cash flow per share has jumped, showing 211.6% growth over the past year, meaning the earnings growth is turning into actual cash.
These elements together describe a company going through a strong rise in profitability and operational size, which is exactly the fundamental driver that high-growth momentum plans try to find.
Technical Condition and Arrangement
Positive fundamentals are most effective when joined with a good price direction. According to the detailed technical report, MOELIS & CO shows notable technical condition, receiving a Technical Rating of 8 out of 10.
- Positive Directions: Both the short-term and long-term directions are labeled positive, an important base for any momentum-focused trade.
- Place Compared to Averages: The stock is trading higher than all its main moving averages (20, 50, 100, and 200-day SMAs), and these averages are all in a rising pattern, confirming the upward trend structure.
- Market Relative Performance: While its one-year performance is a little behind the wider S&P 500, its recent three- and six-month performances are positive, indicating better relative condition.
Maybe more important for an investor searching for an entry, the stock also shows a positive arrangement, with a Setup Rating of 7. The analysis states that prices have been moving sideways lately, with lower volatility. The stock is now in a pullback inside its one-month trading range, which could be creating a possible entry chance. The technical report finds a clear support area below the present price and a set resistance zone above, giving a structure for judging risk and reward.
Combination for Momentum Investors
For a momentum investor, the attraction of MOELIS & CO is in the combination of these elements. The very high fundamental growth measures give the "why" – a reason for the stock to draw money based on better earnings and analyst opinion. The high Technical Rating confirms that the market has been noting this improvement, placing the stock in a continued upward direction.
The fair Setup Rating then speaks to the "when." It indicates the present price action is not showing extreme, stretched behavior but is instead moving in a consolidation. This formation can provide a more controlled entry point, with specific nearby support levels to aid in risk management, just as the stock’s basic growth story stays in place. This pairing tries to balance the search for high growth with a careful method to entry.
Interested in examining other stocks that fit this mix of high growth momentum and technical breakout arrangements? You can use the filter yourself with the High Growth Momentum Breakout Setups Screen.
,
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 ground for an investment choice. Investors should do their own research and think about their personal money situation and risk comfort before making any investment.
