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 43.8% year-over-year EPS growth in the most recent quarter, with accelerating trends in prior quarters (42.0% and 31.8% in Q-1 and Q-2, respectively).
• Revenue Growth: Sales increased by 39.2% in the latest quarter, following strong growth in previous periods (36.9% and 30.6% in Q-1 and Q-2).
• Profit Margins: The company maintains solid profitability, with a recent quarterly profit margin of 21.0%. Free cash flow growth surged by 91.6% over the past year.
• Analyst Revisions: EPS estimates for the next year have been revised upward by 53.3% over the last three months, indicating improving sentiment.

Technical Strength & Setup

• Technical Rating (8/10): MPWR shows a positive long-term and short-term trend, supported by rising moving averages (20-day, 50-day, and 100-day SMAs).
• Setup Quality (7/10): The stock is consolidating after recent gains, presenting a potential entry point. A recent Pocket Pivot signal suggests accumulation.
• Key Levels: Resistance lies between $746.75 and $764.41, while support is found near $661.89. A breakout above resistance could signal further upside.

For a deeper technical analysis, 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.