TransMedics Group Inc. (NASDAQ:TMDX) Combines High-Growth Momentum with Bullish Technical Setup

For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-factor screening method can be especially useful. One practical plan focuses on finding firms that display solid high-growth momentum traits, like speeding up earnings and sales, while also showing a positive technical chart formation ready for a possible breakout. This technique tries to match a company's core business momentum with good market timing, looking for chances where fundamental force is reflected by a stock's price movement arranging for its next move up.

TransMedics Group Inc. (NASDAQ:TMDX) appears as a candidate meeting this pair of standards. The medical technology firm, which focuses on portable organ perfusion systems for transplantation, shows the very strong growth measures that momentum investors look for.

Fundamental Growth Momentum

The firm's latest financial results display the speeding up and size of growth key to the high-growth momentum plan. Important measures include:

• Outstanding Earnings Growth: The firm's most recent quarter showed a very high year-over-year EPS growth of 450%. This comes after a series of strong quarterly growth rates of 163%, 100%, and 58% over the three earlier periods, showing a trend of notable speeding up.
• Solid Sales Increase: Revenue growth stays healthy, with the last quarter up 32% year-over-year. This adds to good sales growth in earlier quarters, which went from 38% to 49%.
• Regular Earnings Surprises: A key part for momentum is a firm's capacity to beat expectations. TransMedics has topped EPS estimates in every one of the last four quarters, with an average surprise above 92%.
• Margin Improvement: The firm's profit margin in the last reported quarter was 16.9%, a large gain from the 5.6% margin reported three quarters before, pointing to operational leverage and better profitability along with fast sales growth.
• Analyst Belief: The average analyst estimate for next year's EPS has been moved up by over 10% in the last three months, showing increasing positive feeling about the firm's short-term future.

These points together add to the stock's High Growth Momentum Rating of 7, indicating good fundamental momentum that fits with strategies like CANSLIM, which search for market leaders with speeding up profits.

Technical Force and Setup Quality

Apart from the fundamentals, the stock's price action shows a technically positive view with a clear setup. According to the detailed technical report, TransMedics has a Technical Rating of 7, showing a sound overall trend. The analysis states the long-term trend is positive, and the stock has done better than 93% of the market over the past year.

Maybe more important for timing an entry, the stock has a Setup Rating of 7. This score measures the quality of a consolidation pattern, suggesting the stock is moving within a set range and could be getting ready for a possible breakout. The technical report points out that prices have been consolidating recently, with a clear support area found below the current price. This formation allows for a planned trade setup with a clear entry point above resistance and a protective stop-loss order set below the nearby support level, handling risk well.

Conclusion

TransMedics Group shows a case where strong business momentum meets a positive technical position. The firm's very strong earnings growth, improving margins, and regular beating of expectations create a solid fundamental base. This is paired with a stock chart that shows relative force and is now consolidating in a way technical analysts often link with possible breakout chances. For investors using a high-growth momentum plan that values both what to buy and when to buy it, TMDX presents a profile worth more review.

This analysis came from a screen made to find similar chances. You can find more stocks that meet these joined standards of high growth momentum and technical breakout setups by running this screen yourself.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The information presented should not be the sole basis for making any investment decision. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment. Past performance is not indicative of future results.