PERELLA WEINBERG PARTNERS (NASDAQ:PWP) Shows Strong Growth Momentum and Technical Breakout Potential

Investment strategies that combine strong growth momentum with solid technical setups often look for stocks showing both improving fundamentals and positive chart patterns. One method involves finding companies with a High Growth Momentum (HGM) Rating above 4, a Technical Rating above 7, and a Setup Rating above 7. These filters help spot stocks with strong earnings momentum, rising prices, and patterns that may lead to breakouts. PERELLA WEINBERG PARTNERS (NASDAQ:PWP) appears as a potential match for this strategy, with solid growth numbers and a favorable technical setup.

High Growth Momentum Fundamentals

PWP’s growth metrics are notable across several areas, making it an interesting pick for momentum-focused investors:

• Earnings Growth: The company’s trailing twelve-month (TTM) EPS growth of 403.8% highlights significant profit growth. Recent quarterly EPS growth numbers are also strong, with the latest quarter up 380% year-over-year (YoY), followed by earlier quarters showing 225%, 183%, and 169% YoY growth.
• Revenue Momentum: Sales growth has been steady, with TTM revenue up 59.5% YoY. The most recent quarter saw a 107.4% YoY jump, though growth has slowed sequentially.
• Free Cash Flow (FCF) Expansion: FCF per share rose 346.5% over the past year, showing better cash generation.
• Profit Margin Trends: Margins varied quarterly (ranging from 5.9% to 9.2%), but the overall trend matches expanding operations.

These figures fit the HGM Rating’s emphasis on growth, surprises, and revisions. PWP has exceeded EPS estimates by an average of 74.3% and revenue estimates by 22.7% over the past four quarters, showing steady outperformance. However, recent analyst revisions for next-year estimates have turned slightly negative (-6.5% for EPS, -7.0% for revenue), which investors should watch.

Technical Strength and Setup Quality

PWP’s technical profile, as seen in its ChartMill Technical Report, aligns with its fundamental strength:

• Technical Rating of 7: The stock’s medium-term trend is neutral, but it has beaten 79% of all stocks over the past year and 71% of its peers in capital markets. Key moving averages (20-day, 50-day, 100-day) are climbing, indicating short-term strength.
• Setup Rating of 7: The stock is trading in an $18.66–$21.61 range, with resistance near $20.98–$21.01. A move above this level could signal further gains.
• Support Levels: Multiple support zones sit between $19.12–$20.79, offering a clear risk outline. The stock also recently triggered a Pocket Pivot signal, suggesting buying interest.

The setup points to a possible entry above $21.02, with a stop-loss just below $20.57, capping downside at ~2.1%. The stock’s liquidity (average daily volume of 1.06 million shares) also supports trading ease.

Why This Combination Matters

High-growth momentum strategies, such as those inspired by CANSLIM or Minervini, focus on stocks with rising earnings and technical breakouts. PWP’s strong EPS growth, along with its consolidation near resistance, fits this approach. The technical setup offers a clear entry point, while the HGM Rating confirms the growth story.

For investors looking for similar opportunities, the High Growth Momentum Breakout Setups screen provides a filtered list of stocks meeting these criteria.

Disclaimer: This analysis is not investment advice. Investors should do their own research and assess risk tolerance before making decisions.