Rush Street Interactive Inc (NYSE:RSI) Combines Explosive Growth with Strong Technicals for Momentum Investors

Rush Street Interactive Inc (NYSE:RSI) has become an interesting candidate for high growth momentum investors, combining solid fundamental growth with good technical positioning. The company runs regulated online gaming platforms in several U.S. states and international markets, placing itself in the growing digital gaming and sports betting sector.

High Growth Momentum Fundamentals

Rush Street Interactive displays notable growth traits that fit momentum investing strategies. The company's earnings performance shows significant acceleration over multiple periods:

• EPS Growth (TTM): 540% year-over-year
• Recent Quarterly EPS Growth:
  • Current quarter: 175%
  • Previous quarter: 200%
  • Two quarters prior: 600%
• Free Cash Flow Growth: 252% year-over-year
• Revenue Growth (TTM): 27% year-over-year

The company has regularly surpassed analyst expectations, with four straight quarters of both EPS and revenue beats. EPS surprises have averaged a notable 225% over this period, signaling good operational execution and possible underestimation of the company's growth path. Analyst outlook stays positive, with next-year EPS estimates adjusted upward by 23.7% over the last three months.

Technical Strength and Setup Quality

According to the technical analysis report, Rush Street Interactive has a perfect Technical Rating of 10 out of 10, signaling very good technical health. The stock shows good relative strength, doing better than 95% of all stocks and 96% of its peers in the Hotels, Restaurants & Leisure industry.

Key technical points include:

• Trend Direction: Both long-term and short-term trends are positive
• Moving Averages: Price trading above all major moving averages (20, 50, 100, and 200-day)
• Performance Metrics:
  • 3-month performance: +57.9%
  • 6-month performance: +95.4%
  • 12-month performance: +107.6%

The Setup Rating of 7 points to a consolidation pattern that could offer a good entry opportunity. The stock has been trading in an $18.60-$22.55 range lately, with lower volatility hinting at potential for a breakout. Support levels are established around $20.90, offering a clear risk management level for potential positions.

Investment Considerations

For momentum investors, Rush Street Interactive offers a special mix of strong earnings growth and technical health. The company's steady earnings surprises and upward analyst adjustments point to continued momentum, while the technical setup offers a possibly good risk-reward situation. The gaming industry's structural growth trends, especially in online and mobile platforms, offer a supportive environment for the company's expansion plan.

The current technical consolidation, paired with solid fundamental momentum, creates conditions that frequently come before important price movements. Investors should watch the stock's capacity to break above recent resistance levels while holding the established support zones.

Finding Similar Opportunities

For investors looking to find other high-growth momentum stocks with good technical setups, more screening results are available through this specialized stock screener. This tool finds companies matching the same standards of solid growth momentum, technical health, and favorable setup patterns.

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Disclaimer: This analysis is for informational purposes only and should not be considered as investment advice. The information presented does not constitute a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.