For investors aiming for major capital gains, a method that joins solid core business traits with positive technical price shapes can be an effective way. The process centers on finding firms displaying durable and lasting expansion, firm earnings, and sound money management, the signs of a good business. This core quality is then combined with a technical filter that searches for shares showing a tightening range and lower price swings, frequently a sign of a possible upward move. The aim is to locate expansion shares where the business is performing very well just as the share price indicates it may be leaving a phase of sideways movement, possibly marking the beginning of a new rising phase.
ODDITY TECH LTD-CL A (NASDAQ:ODD) offers a strong example for this dual method. The firm, which runs a technology-based system for online beauty and wellness sales, ranks well on main expansion measures while also displaying a technical formation that indicates a possible turning point.
A Fundamental View of Notable Expansion
The firm’s fundamental report shows a business in a forceful expansion stage, which is the main requirement for this investment filter. ODDITY Tech’s finances are marked by fast sales increase and firm profit performance.
- Revenue & Earnings Growth: The firm has shown notable expansion, with sales rising 25.8% in the past year and averaging a yearly growth rate of 42.7% over recent years. Earnings per share (EPS) have moved similarly, growing 15.1% last year and at a very fast 88.3% yearly rate over a longer time. This steady, high-level growth is what expansion investors look for.
- Profitability and Efficiency: Expansion is not hurting profitability. ODDITY has very good margins, with a Profit Margin of 14.1% that beats 94% of similar firms in the Personal Care Products industry. Its Return on Equity (ROE) of 28.9% is also with the best in the field, showing very effective use of investor money.
- Financial Health: The firm keeps a very solid cash position, with a Current Ratio of 7.54 and a Quick Ratio of 6.42, showing no short-term payment worries. While its Debt/Equity ratio is high, it has no debt that charges interest, and its Altman-Z score shows a low chance of bankruptcy soon.
This mix leads to a high ChartMill Growth Rating of 9 and a Profitability Rating of 9. For the expansion-focused part of the method, these ratings verify that ODDITY has the core business speed that could push future share price gains. You can see all the details in the fundamental analysis report.
The Technical Formation: Tightening Range During Weakness
While the long-term and short-term trends for ODD are still negative, a fact noted in its technical report, the present price movement shows the exact shape the filter is made to find. After a large fall from its 52-week peaks, the share has started a phase of tightening range.
- Lower Swings and Defined Range Trading: In the last month, ODD has been moving inside a set range ($41.15 - $46.45), showing lower price swings compared to its earlier drop. This kind of price action, where selling eases and the share forms a base, is often a needed step before a new trend can start.
- Important Support and Resistance Points: The technical study finds clear support areas near present prices, including a trend line near $41.59 and a firmer support zone between $37.69 and $38.04. On the higher side, close resistance is in the $42.75 to $43.50 area. A steady move above this resistance with high trading volume could show a change in momentum.
- The Setup Rating: Even with the low overall technical rating of 1, the report gives a Setup Rating of 7. This specifically mentions "lower price swings while prices have been in a tightening range," which is the exact technical state the screening method tries to find. It implies the share is forming a base from which a new move could start.
The technical view, then, is not one of present force but of a possible change point. The filter looks for this specific situation: a fundamentally solid firm whose share has passed through a drop and is now showing initial signs of steadiness, giving a possible entry chance before a new expansion stage. The full technical picture is in the technical analysis report.
Valuation and Points to Note
From a value angle, ODDITY trades at a P/E ratio near 18.9. While this shows a higher value in simple terms, it is less expensive than the wider S&P 500 average and most of its industry peers. For a firm growing sales and earnings at its expected rates (EPS growth forecast at 15.1%, sales at 20.4%), such a value can be accepted by expansion investors, particularly given its high profitability. The main risk stays the share's ability to turn its fundamental force into a continued positive price trend, moving away from its present tightening range.
Conclusion
ODDITY Tech shows the hunt for solid expansion shares at a technical change point. Its fundamental view is strong, noted by top-tier growth rates, high profitability, and sound financial condition. Technically, the share is trying to build a base after a large drop, displaying the lower swings and tightening range that often come before a new directional move. For investors using an expansion-at-a-fair-price method with a technical entry part, ODD presents a case where the business quality seems unchanged, and the chart is forming for a possible turn.
Want to find other shares that fit this profile of solid fundamentals combined with a positive technical formation? You can examine the ready-made filter or create your own using our stock screener.
Disclaimer: This article is for information and learning only and is not a suggestion to buy, sell, or keep any security. The study shown is based on data and reports available when written. Investing has risk, including the possible loss of the original amount. Always do your own complete research and think about your personal money situation and risk comfort before making any investment choices.
