MONOLITHIC POWER SYSTEMS INC (NASDAQ:MPWR) – A Strong Growth Stock with a Technical Setup

MONOLITHIC POWER SYSTEMS INC (NASDAQ:MPWR) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a recent price consolidation that could present an opportunity for investors.

Fundamental Strengths

• Growth: MPWR has demonstrated strong revenue and earnings growth, with past year EPS increasing by 32.53% and revenue up 30.57%. Future estimates suggest continued growth, with EPS expected to rise by 19.18% annually.
• Profitability: The company scores a 9/10 in profitability, with high margins—25.67% operating margin and 55.37% gross margin—outperforming most peers.
• Financial Health: A 9/10 health rating reflects a strong balance sheet, including no debt, a current ratio of 4.92, and an Altman-Z score of 37.84, indicating low bankruptcy risk.
• Valuation: While the stock trades at a premium (P/E of 43.09), this is partly justified by its high growth and profitability.

Technical Setup

• Consolidation: MPWR has been trading in a range between $608.96 and $755.00, with recent movement suggesting a potential breakout.
• Support & Resistance: Key support lies near $661.89, while resistance is seen around $715.41–$720.61. A move above resistance could signal further upside.
• Trend Indicators: Short and long-term trends are neutral, but the stock has outperformed 81% of its semiconductor industry peers.

For a deeper look, review the full fundamental report and technical analysis.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria.

Disclaimer

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