For investors looking to join solid fundamental growth with good technical entry points, a multi-factor screening method can be an effective tool. By selecting for stocks that show strong earnings momentum, good technical condition, and a tightening price pattern, the method tries to find companies that are not only expanding quickly but are also set for a possible near-term price rise. This process joins the ideas of high-growth momentum investing with technical breakout trading, concentrating on securities where fundamental speed and technical position meet.
Terreno Realty Corp (NYSE:TRNO) appears from such a screen, making a case for investors using this joined method. The industrial real estate investment trust (REIT) focuses on buying and running infill industrial properties in important U.S. coastal markets, a specialty that has shown durability and expansion possibility.
High Growth Momentum Profile
The center of the momentum method rests in finding speeding financial performance. Terreno Realty’s recent results display several signs that build a good High Growth Momentum Rating.
- Outstanding EPS Growth: The company’s trailing twelve-month (TTM) earnings per share growth is at a notable 74%. More importantly, the latest quarter saw EPS jump 170% against the same quarter last year, pointing to strong short-term earnings momentum.
- Good Revenue Increase: Backing the bottom-line growth, TTM revenue has risen by more than 21%. Sales growth has been steadily positive, with the last few quarters displaying year-over-year gains ranging from about 17% to 30%.
- Positive Surprises and Margin Growth: Terreno has exceeded EPS estimates in each of the last four quarters, with an average beat of more than 111%. Also, the profit margin in the last reported quarter grew noticeably to 88.5%, up from 82.8% in the previous quarter and 43.4% two quarters ago, hinting at better operational efficiency.
- Strong Cash Flow Creation: Free cash flow per share over the TTM period increased by 151%, highlighting the fundamental condition and financial adaptability of the business.
These items together create an image of a company in a strong phase of fundamental speed, a main need for high-growth momentum methods which focus on earnings and sales momentum, positive surprises, and growing profitability.
Technical Condition and Setup Quality
While good fundamentals give the "why," the technical view gives the "when." According to the detailed technical report, TRNO shows both the condition and the pattern that technical traders search for.
Technical Condition (TA Rating: 8/10) The stock receives a high technical rating, mirroring its solid price trend. Main positives involve:
- Both the short-term and long-term trends are labeled positive.
- The stock is trading above important moving averages (20-day, 50-day, 100-day), which are all in rising arrangements.
- It shows relative condition inside its industry, doing better than 77% of its peers in the Diversified REITs sector.
Tightening Setup (Setup Rating: 8/10) Maybe more important for timing an entry, TRNO shows a positive setup pattern. The analysis states that prices have been tightening recently, with lower volatility—a common sign before a possible breakout.
- The stock has been trading in a band between about $56 and $64 over the past month and is now testing the higher side of this band.
- A clear support area is found between $59.38 and $61.51, made by a mix of trendlines and moving averages, giving a sensible zone for a protective stop-loss order.
- The report points out a recent "Pocket Pivot" signal, a price/volume pattern often seen as institutional accumulation, adding another layer of positive confirmation.
- With very little close resistance above the present price, the way for a breakout seems clear.
This joining—a technically sound stock in a long uptrend now waiting in a close tightening—is exactly what the screening method looks for. It hints the stock may be gathering force for its next move up, lining up the technical entry point with the fundamental growth story.
A Meeting Opportunity
Terreno Realty Corp shows a case where the screens for high-growth momentum and technical breakout patterns meet. The company’s fast recent EPS growth, steady revenue gains, and good profit margins meet the fundamental needs that momentum investors focus on. At the same time, its positive and set price trend, joined with a present tightening phase near highs, gives the technical setup that traders use to find possible entry points. This meeting tries to lower risk by searching for companies with basic business momentum at a time when their charts indicate a positive risk/reward setup for involvement.
For investors wanting to examine other securities that fit this joined standard of high growth momentum and technical breakout setups, more results can be seen by using the set screen: High Growth Momentum Breakout Setups.
,
Disclaimer: This article is for information only and does not make investment advice, a suggestion, or an offer to buy or sell any security. The analysis is based on given data and should not be the only base for an investment choice. Investors should do their own research and think about their personal money situation and risk comfort before making any investment. Past results are not a guide for future results.
