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

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 fundamental growth metrics with a promising chart pattern, making it worth a closer look for investors seeking growth opportunities.

Fundamental Strengths

• Growth: MPWR has demonstrated strong revenue and earnings growth, with revenue increasing by 30.57% over the past year and EPS growing by 32.53%. The company is expected to maintain solid growth, with forward EPS projections at 18.74%.
• Profitability: The company scores a 9/10 in profitability, with industry-leading margins, including a 25.67% operating margin and a 55.95% return on equity.
• Financial Health: MPWR maintains a strong balance sheet with no debt, a current ratio of 4.92, and an Altman-Z score of 41, indicating low bankruptcy risk.

Technical Setup

• Breakout Potential: The stock is consolidating near a key resistance zone between $757.37 and $764.41. A breakout above this level could signal further upside.
• Recent Strength: MPWR has shown resilience, trading within a range of $670 to $778.86 over the past month, with a recent pocket pivot signal suggesting accumulation.
• Trend Support: The long-term trend remains positive, while short-term price action is neutral, offering a potential entry point if momentum resumes.

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

Our Strong Growth Stocks with Good Technical Setup screener provides more stocks with similar characteristics.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.