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

MONOLITHIC POWER SYSTEMS INC (NASDAQ:MPWR) stands out as a compelling candidate for high-growth momentum investors, combining strong earnings momentum with a favorable technical breakout pattern. The stock meets key criteria for growth and technical strength, making it worth a closer look.

Growth Momentum Highlights

• Earnings Growth: MPWR reported a 32.5% year-over-year increase in EPS (TTM), with recent quarterly EPS growth exceeding 43%.
• Revenue Growth: Sales rose 30.6% over the past year, with the latest quarter showing a 39.2% jump compared to the same period last year.
• Free Cash Flow Surge: FCF per share grew 91.6% year-over-year, reflecting strong operational efficiency.
• Positive Revisions: Analysts have raised EPS and revenue estimates for the next year by 1.0% and 1.7%, respectively, over the past three months.
• Profit Margins: The company maintains healthy margins, with the latest quarter showing a 21.0% profit margin.

Technical Strength & Setup

• Technical Rating (7/10): MPWR is in a positive long-term and short-term trend, trading near the upper end of its recent range.
• Setup Quality (8/10): The stock has been consolidating, with reduced volatility and clear support levels. A breakout above $718.59 could signal further upside.
• Support & Resistance: Key support lies around $713.58, while resistance is near $737.74. A move above resistance could confirm bullish momentum.

For a deeper technical breakdown, review the full technical report.

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Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.