A systematic method for finding promising investment opportunities joins basic growth momentum with technical breakout formations. This process filters for companies showing solid earnings speed-up, favorable estimate changes, and growing profit margins, key parts of the ChartMill High Growth Momentum Rating. At the same time, these stocks need to show good technical condition and base patterns, as evaluated by the Technical Rating and Setup Quality Score, indicating they are both moving well and set for possible breakouts. This two-part method tries to find companies with speeding-up business basics that also offer good risk-to-reward technical formations.
UBER TECHNOLOGIES INC (NYSE:UBER) appears as a candidate that fits these strict conditions, justifying a more detailed look at its growth path and technical state.
High Growth Momentum Fundamentals
Uber's basic profile shows the sort of speeding-up business results that high growth momentum investors look for. The company has shown a marked turnaround and notable growth in profitability, which is important to the High Growth Momentum Rating's assessment of earnings and sales growth, speed-up, and positive surprises.
Key basic metrics supporting its rating are:
- Notable EPS Growth: The company reported a trailing twelve-month (TTM) EPS of $4.8, showing a large year-over-year growth of 137.6%. The newest quarter had an even more pronounced EPS jump of 159.2% from the same time last year.
- Profit Margin Growth: An important part of the rating is the growth of profit margins. The profit margin in the last reported quarter was 49.2%, a large gain from 10.7% in the previous quarter, showing better operational performance and pricing ability.
- Solid Free Cash Flow Creation: Uber's free cash flow per share grew by 278% over the past year, getting to $4.15, indicating a sound and self-supporting business model.
- Favorable Analyst Changes: Analysts have become more positive, increasing their next-year EPS estimates by 1.13% and revenue estimates by 1.85% over the last three months. This upward change is a key part of the momentum rating, as it shows increasing belief in the company's future outlook.
- Steady Revenue Growth: The company has kept good top-line growth, with TTM revenue growing 18.2% year-over-year and the next quarter's sales predicted to grow 21.9%.
These parts come together to give Uber a High Growth Momentum Rating of 6, indicating a company in a solid basic upward move, a requirement for this investment method.
Technical Condition and Market Standing
From a technical viewpoint, Uber shows traits of a stock in a steady upward move, matching the method's need for technically sound candidates. The stock's Technical Rating of 7 is backed by several points detailed in its full technical report.
Notable technical positives are:
- Solid Relative Performance: Uber is doing better than 77% of all stocks in the market on a yearly basis and sits in the leading group of its Ground Transportation industry, doing better than 83% of its competitors.
- Good Long-Term Move: The long-term move stays positive, with the stock trading above important rising moving averages (SMA50, SMA100, SMA200).
- Base Within a Band: Over the past month, the stock has been trading between $90.08 and $100.35. It is currently forming a base in the middle of this band, which can offer a possible entry chance as some short-term resistance is absorbed.
This technical condition makes sure the stock's price action supports the positive basic story, an important confirmation for momentum investors.
High-Quality Setup Formation
Beyond a solid trend, the method particularly searches for practical entry points, which is where Uber's Setup Rating of 8 becomes very applicable. The technical assessment points to a promising base formation.
The setup is described by:
- Lowered Volatility: The assessment notes lowered volatility as prices have been forming a base in the recent time, a typical sign of building pressure before a possible move.
- Set Support and Resistance: A clear support area is found between $90.99 and $93.69, giving a sensible level for a stop-loss order. Resistance is noted just above the current price, marking a possible breakout level.
- Automated Trade Idea: Based on this formation, the assessment proposes a possible breakout entry above $95.44, with a stop-loss set below the support area at $90.98, capping the theoretical risk to 4.67%.
This high-quality setup gives a structured plan for investors aiming to time their entry into a high-growth company, controlling risk by using a time of price base within a longer-term upward move.
Conclusion
UBER TECHNOLOGIES INC presents a strong case for investors using a high growth momentum method joined with technical breakout signs. The company's marked earnings speed-up, growing profitability, and favorable analyst opinion form a sound basic base. This is paired with a technically good chart showing solid relative performance and, most significantly, a clear base setup that gives a defined possible entry point with controlled risk. The combination of these points makes Uber a stock deserving more study for investors following this structured method.
For investors looking for more opportunities that match this specific profile, a pre-set screen is ready to find other stocks with solid growth momentum and positive technical setups. You can find more results from this screen here.
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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 UBER. All investment decisions carry 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 suggestion mentioned are generated automatically and are not a recommendation to buy or sell any security.
