For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-layered screening method can be very useful. One approach is to sort for stocks that show healthy earnings momentum, good technical condition, and a positive price pattern set for a possible advance. In detail, this plan searches for companies with a high ChartMill High Growth Momentum (HGM) Rating, which reflects speeding up earnings and sales trends, combined with good Technical and Setup Ratings that indicate both a current uptrend and a consolidation period giving a clear risk/reward structure. This combination of elements tries to find securities where strong fundamental forces are meeting a positive technical picture.
MasTec Inc. (NYSE:MTZ), a top infrastructure construction services company, appears as a candidate from this kind of screen. The company's profile shows it is heavily engaged in sought-after areas like communications, clean energy, and power delivery, which could support continued growth. The screening rules, which require a minimum HGM Rating, are made to find companies with not only previous growth, but with forward movement in key financial metrics, a sign of possible market leaders. MTZ's basic financial data shows why it meets this fundamental requirement.
Fundamental Growth Momentum
A detailed review of the given metrics shows MasTec is in a time of major earnings growth and recovery, a central part of the High Growth Momentum Rating. The rating brings together factors like growth rates, speed increases, profit margin growth, and earnings surprises.
- Earnings Power Rising Strongly: The most notable numbers relate to earnings per share (EPS). The trailing twelve-month (TTM) EPS has increased almost 90% year-over-year. Even more notable is the recent quarterly speed, with year-over-year EPS growth in the last three reported quarters at 118%, 492%, and 55%, in that order. This shows a strong speed increase in profitability.
- Steady Positive Surprises: The company has exceeded EPS estimates in each of the past four quarters, with an average surprise above 19%. This steady outperformance implies management performance is beating expectations, a good sign for momentum investors.
- Margin Growth in Progress: After a time of narrowing, profit margins are displaying clear signals of getting better. The profit margin in the newest quarter was about 4.05%, up greatly from 0.35% two quarters before. A growing margin on increasing revenue is a standard signal of operating leverage and improving business quality.
- Supportive Cash Flow and Revisions: Free cash flow per share has increased 87% over the past year, giving fundamental support for the earnings growth. Also, analysts have been raising their estimates over the past three months, showing growing belief in the company's short-term future.
This group of data points, solid growth, speed increase from a low starting point, growing margins, and positive surprises, supports MTZ's qualifying HGM Rating and matches the search for companies with fundamental momentum.
Technical Strength and Setup Quality
While good fundamentals give the "why," technical analysis can help with the "when." According to the detailed ChartMill Technical Report, MTZ does well here too, getting a perfect Technical Rating of 10 and a high Setup Rating of 8.
- Clear Uptrend: The report says that both the short-term and long-term trends are positive, a "very positive sign." The stock is trading above all important moving averages (20, 50, 100, and 200-day), which are all going up, confirming the strength and width of the trend.
- Market and Industry Position: MTZ is doing better than 94% of all stocks in the market over the past year and 85% of its peers in the Construction & Engineering industry. This relative strength is a central idea of momentum investing, showing institutional demand and market notice of its growth story.
- Positive Consolidation: Maybe most important for entry timing, the report mentions a "decent setup pattern." The stock has been consolidating its recent gains in a range between about $226 and $277, with lower volatility. This pause inside a strong uptrend can form a possible base for the next move up. The report finds a support zone near $240, giving a reasonable area for a stop-loss order to handle risk.
The mix of a perfect technical score and a high setup score suggests MTZ is not only in a strong uptrend but is also giving a considered chance for entry after a time of consolidation, instead of being overstretched.
Conclusion
MasTec Inc. presents a case where a screening method centered on dual momentum, both in fundamentals and price, has found a possible candidate. The company's fast earnings recovery, margin gain, and steady beats form a persuasive growth story. This fundamental momentum is reflected in the stock's technical condition, which shows clear leadership and a positive pause in its rise. For investors using plans that look for growth companies at usable technical points, MTZ shows the kind of profile such screens are made to find.
Interested in reviewing other stocks that match this High Growth Momentum Breakout profile? You can run the screen yourself to find current results using this link: High Growth Momentum Breakout Setups Screen.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis is based on data provided and should not be the sole basis for an investment decision. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment.
