SHARKNINJA INC (NYSE:SN) Shows Strong Growth Momentum and Bullish Technical Setup for Investors

Investors looking for high-growth momentum stocks with solid technical setups often focus on companies showing faster earnings, strong sales growth, and positive price movement. The ChartMill High Growth Momentum (HGM) Rating measures these key growth factors, while the Technical Rating and Setup Quality Score evaluate the stock’s price trends and consolidation patterns. Together, these metrics highlight stocks with both strong business performance and potential trading opportunities.

SHARKNINJA INC (NYSE:SN) is a notable example, with an HGM Rating of 6, a Technical Rating of 10, and a Setup Rating of 7. This indicates the stock is a good fit for investors using a growth-at-a-reasonable-price (GARP) or momentum approach.

Fundamental Growth Momentum

The HGM Rating includes various growth and momentum factors, and SN performs well in several important areas:

• Earnings Growth:

  • EPS growth over the past year (TTM) is 21.6%, with the latest quarter showing a 36.6% year-over-year rise.
  • Future estimates point to ongoing growth, with next quarter’s EPS projected to increase 31% YoY.
  • The company has regularly exceeded earnings expectations, with an average surprise of 10.9% over the last four quarters.

• Revenue Growth:

  • Sales growth remains solid, with TTM revenue up 23.5% and the most recent quarter reporting 15.7% YoY growth.
  • Revenue forecasts for the next quarter suggest a 17.4% rise, indicating steady demand.

• Profitability Gains:

  • Profit margins have improved, with the latest quarter’s margin at 9.66%, up from 7.2% two quarters earlier.
  • Free cash flow, though down 22% YoY, stays positive, supporting reinvestment and shareholder returns.

These elements match the HGM Rating’s emphasis on earnings growth, upward revisions, and margin improvement—key factors for momentum investors.

Technical Strength and Setup Quality

SN’s technical profile is equally strong, as outlined in the full technical report:

• Strong Trend:

  • The stock earns a perfect 10 on ChartMill’s Technical Rating, showing a clear uptrend across short- and long-term periods.
  • It beats 82% of all stocks and 85% of its peers in the Household Durables industry over the past year.

• Consolidation and Breakout Potential:

  • The Setup Rating of 7 suggests a consolidation phase, with recent price action forming a bull flag—a pattern often leading to further gains.
  • Support levels are clear near $112.32, offering a defined risk-management point.
  • A recent pocket pivot signal (a volume-backed accumulation pattern) adds more bullish confirmation.

Why This Combination Matters

High-growth momentum strategies work best when fundamental strength aligns with technical breakouts. SN’s mix of faster earnings, upward estimate revisions, and a bullish chart structure makes it an attractive choice for investors targeting:

• Growth at a reasonable price (GARP): Strong EPS and sales growth support its valuation.
• Breakout potential: The technical setup offers an entry point with clear risk levels.
• Relative strength: It outperforms peers and the broader market.

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

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.