For investors looking to join solid fundamental growth with well-timed technical entry points, a layered screening method can be especially effective. One approach uses filters to find stocks that display high growth momentum, sound technical condition, and a favorable price formation. This tactic seeks to find companies not just seeing quickening earnings and sales but also trading in a way that hints at a possible near-term price advance. By combining a high growth momentum rating with technical and setup quality scores, investors can locate chances where fundamental force matches encouraging chart structures.
OLD NATIONAL BANCORP (NASDAQ:ONB) results from such a screen, offering a profile that might interest growth-focused investors searching for a technically positive formation. The bank holding company, which works mainly in the Midwest and Southeast, displays a mix of quickening fundamentals and constructive price movement.
Fundamental Growth Momentum
The heart of the high growth momentum tactic is to find companies with quickening business trends. Old National Bancorp's recent financial results show several important traits that add to its firm rating in this group.
- Earnings Quickening: The company's quarterly earnings per share (EPS) growth has shown clear gain. The latest quarter had year-over-year EPS growth of 26.5%, a notable increase from the 0% growth reported three quarters earlier. Analyst projections indicate this pace may persist, with the next quarter expected to grow by more than 36%.
- Sound Sales Growth: Revenue growth is similarly positive. The most recent quarter reported a 41% year-over-year rise in sales, following strong growth of 45% and 36% in the two previous quarters. This steady, high-rate sales increase is a vital part of lasting momentum.
- Positive Estimate Changes: Analyst outlook has become more optimistic, a central idea of the momentum method. Over the last three months, the average projection for next year's EPS has been raised by 0.7%, showing increasing belief in the company's future earnings.
- Solid History of Exceeding Estimates: The company has met or passed earnings projections in each of the past four quarters, with an average exceedance of 3.7%. This regularity in beating expectations strengthens investor trust and can be a reason for more price gains.
These elements together describe a company in a strong period of operational momentum, which is exactly what the high growth momentum rating intends to find.
Technical Condition and Market Standing
While fundamental momentum is key, the technical view decides the stock's present direction and comparative force. Based on the detailed technical report, Old National Bancorp shows notable technical soundness.
- Favorable Trend Agreement: Both the short-term and long-term trends for ONB are graded as favorable. This agreement across periods is a solid positive sign, indicating continued buying interest.
- High Technical Grade: The stock receives a ChartMill Technical Rating of 8 out of 10. This good score mirrors its place above important moving averages (20, 50, 100, and 200-day SMAs), all of which are in rising arrangements.
- Good Comparative Performance: While it is not a leading market performer, ONB has done better than 61% of all stocks over the past year. Within the banking sector, which includes 383 stocks, it has performed above 42% of its competitors.
This technical base shows the stock is in a confirmed upward trend, offering a positive setting for a momentum-based investment idea.
A Good-Quality Formation for Entry
Finding a solid trend is only one piece; locating a lower-risk entry point is also important. This is where the Setup Quality grade becomes useful, as it finds times of pause inside an uptrend, possible starting points for the next upward move. ONB currently has a Setup Rating of 7, pointing to a positive pattern.
- Pause Inside a Band: Over the last month, the stock has traded between $22.03 and $24.77. It is now trading in the middle of this band, showing a time of rest after recent increases.
- Specific Support and Lowered Volatility: The technical analysis mentions a defined support area between $23.11 and $23.31, made by a mix of trendlines and moving averages. This gives a sensible zone for a protective stop-loss order. The report also states that recent trading has had lowered volatility, a typical feature before a possible price advance.
- Clear Advance Point: The analysis notes a near-term resistance point at the recent high of $24.785. A clear move above this point could mark the restart of the uptrend and act as a possible entry signal for momentum investors.
Locating Comparable Chances
The combination of a solid growth outline, a positive technical trend, and a clear formation pattern makes Old National Bancorp a notable candidate for investors using this structured tactic. For those wanting to find other stocks that fit these exact standards of high growth momentum combined with technical advance formations, more study can be done using the set screen: High Growth Momentum Breakout Setups.
Disclaimer: This article is for information only and is not financial guidance, a support, or a suggestion to buy, sell, or hold any security. The study is based on given data and certain screening methods. Investing has risk, including the possible loss of principal. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.
