TKO GROUP HOLDINGS INC (NYSE:TKO) Presents a High Growth and Technical Breakout Opportunity

A methodical process for finding good investment candidates joins basic growth speed with technical breakout formations. This process filters for businesses showing good earnings and sales speed, favorable analyst changes, and increasing profit margins, key parts of the ChartMill High Growth Momentum Rating. At the same time, these stocks need to show good technical condition and a positive price consolidation formation, as evaluated by the ChartMill Technical and Setup Quality Ratings. This two-part review seeks to identify equities that have both basic business speed and are set for possible short-term price gains.

High Growth Momentum Profile

TKO GROUP HOLDINGS INC (NYSE:TKO) receives a High Growth Momentum Rating of 6, showing a good base of growth traits that momentum investors frequently look for. The rating brings together different short-term earnings and sales speed factors, which are important for finding businesses in a high-speed phase.

• Outstanding Quarterly Sales Increase: The latest quarter showed a very large 92.1% year-over-year sales increase, a clear sign of strong operational speed.
• Good Forward-Looking Estimates: Analyst forecasts suggest continued good growth, with the next quarter's EPS and sales expected to increase by 162.1% and 65.4%, in that order.
• Positive Analyst Changes: The average EPS estimate for the next year has been increased by 7.7% over the past three months, showing rising confidence from the analyst group.
• Notable Cash Flow Creation: Free Cash Flow per share has grown very quickly, showing a 1,180.9% increase over the last year, highlighting good financial condition and operational effectiveness.
• Steady Revenue Estimate Exceedances: The business has exceeded revenue estimates in each of the past four quarters, with an average exceedance of 8.2%, showing a habit of under-promising and over-delivering.

While the trailing twelve-month EPS growth shows a decrease, the strong recovery in the latest quarter and the positive forward estimates indicate the business might be moving past previous difficulties. This change is exactly what the High Growth Momentum Rating is meant to identify, concentrating on speed and future possibility instead of only on past results.

Technical Condition and Market Standing

From a technical viewpoint, TKO shows a positive case with a Technical Rating of 7. This score indicates a stock in a technically good state, especially when seen from a medium to long-term view. The technical review highlights the stock's relative condition and its place within the wider market.

• The stock has done much better than its industry, ranking higher than 82% of stocks in the Entertainment field.
• Its yearly performance puts it in front of 87% of all stocks in the market.
• The long-term direction stays positive, with the stock trading well above its rising 100-day and 200-day moving averages.

This technical soundness is a main part of the filtering process, as it helps find market leaders, stocks that are not only growing fundamentally but are also being valued for it by the market. A high Technical Rating helps to confirm that the growth story is being acknowledged and supported by price movement.

Quality Formation for Possible Breakout

Maybe the most current part for traders is TKO's Setup Quality Rating of 7. This rating finds stocks that are consolidating after a move, possibly forming the base for a new upward phase. The present technical view for TKO indicates such a consolidation is happening.

According to the detailed technical report, TKO is showing lower volatility while prices have been consolidating in a fairly narrow band. This action often comes before a notable price move. The report finds a clear support area below the current price, near $186.84, which gives a sensible level for a stop-loss order to handle risk. The existence of this specific support, joined with the stock's general technical condition, forms a situation where a breakout above nearby resistance could indicate a new entry chance. This mix of a sound technical base and a clear, usable formation is what traders search for to time their entries in high-speed names.

A Merging Chance

TKO GROUP HOLDINGS INC presents a case where basic speed and technical positioning merge. Its high growth numbers, especially the large recent sales increase and positive analyst feeling, meet the standards looked for by momentum investors. At the same time, its good technical rating confirms its market leadership, and the high setup rating shows it is presently placed in a formation that has come before further gains. This combination of a speeding-up business and a positive chart formation makes it a notable candidate for methods that mix growth and momentum investing.

For investors looking for more chances that fit this particular mix of high growth speed and technical breakout formations, more study can be done using the given stock screener.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. The author has no position in TKO. All investments involve risk, and you should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The technical setup and trade example mentioned are generated automatically and are not a recommendation to buy or sell any security.