TKO GROUP HOLDINGS INC (NYSE:TKO) Combines Technical Strength and High Growth Momentum

In the world of growth investing, combining technical strength with fundamental momentum can be a good approach. The method used here brings together Mark Minervini’s Trend Template, a structured tool for finding stocks in strong uptrends, with a focus on high growth momentum (HGM). This two-step screening process makes sure that chosen securities not only show good price action and relative strength but also display accelerating earnings, sales growth, or other fundamental catalysts that point to potential for continued strong performance.

TKO GROUP HOLDINGS INC (NYSE:TKO) is a notable candidate based on this combined method. From a technical view, TKO meets all main conditions of the Minervini Trend Template. The stock is trading above its key moving averages, including the 50-day ($175.47), 150-day ($163.35), and 200-day ($157.26), with each average moving up, confirming positive momentum across multiple timeframes. Its current price of $189.56 sits well above the 30% level from its 52-week low ($113.16) and is close to its 52-week high ($194.76), showing strong recovery and leadership traits. Also, with a relative strength ranking of almost 90, TKO is doing better than most stocks, a sign of market leaders as noted in Minervini’s strategy.

Fundamentally, TKO shows several high-growth traits that fit with momentum investing. Recent quarterly EPS growth rose by over 317%, though it is important to note that earlier quarters showed changes, a typical feature in high-growth, developing businesses. Revenue growth was also strong, with the last quarter showing a 92% increase year-over-year, pointing to good top-line expansion. Free cash flow per share grew by over 309% on a trailing twelve-month basis, showing better liquidity and operational efficiency. While yearly EPS growth shows some variation, the strong recent quarterly performance and upward changes for future quarters suggest building momentum, a main point for growth investors looking for companies in a positive earnings revision cycle.

The company works in the entertainment sector, home to well-known properties like UFC, WWE, and PBR, which have wide media rights, live events, and branding chances. This varied portfolio places TKO to benefit from the increasing demand for sports and entertainment content, offering multiple income sources and possible catalysts, such as new partnerships or expanded distribution deals, that might lead to more growth.

According to ChartMill’s technical analysis report, TKO has a perfect technical rating of 10, showing very good trend health, and a good setup rating of 7, pointing to a consolidation phase that may offer a useful entry point. The stock is trading near its 52-week high with good support levels seen around $182.60, giving a possible stop-loss reference for risk management.

Read the full technical report for TKO here.

For investors interested in looking at other stocks that meet this strict growth and momentum criteria, more results can be found using the High Growth Momentum + Trend Template screen.

Disclaimer: This is not investment advice. This analysis is for informational and educational purposes only. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.