UMB FINANCIAL CORP (NASDAQ:UMBF) Shows Strong Growth Momentum and Technical Breakout Potential

Investors using strategies that focus on fast growth and technical breakouts often look for stocks with strong earnings improvement, upward estimate changes, and steady price movement. The approach filters for firms with a High Growth Momentum (HGM) Rating over 4, which points to good earnings and sales growth, paired with a Technical Rating above 7 and a Setup Rating above 7. These ratings suggest a stable trend and a pattern ready for a breakout. UMB FINANCIAL CORP (NASDAQ:UMBF) meets these conditions, making it a strong choice for investors aiming to benefit from both fundamental and technical factors.

Fundamental Growth Momentum

UMBF’s High Growth Momentum Rating of 6 highlights several positive factors:

• Earnings Growth: The company showed a 21.94% year-over-year EPS increase (TTM), with the latest quarter rising 36.23% compared to the same period last year. While quarterly growth has varied (-13.78% in Q-1, +68.28% in Q-2), the next quarter’s estimate predicts a recovery at +13.04%.
• Sales Momentum: Revenue growth is even stronger, with a 76.71% year-over-year rise in the most recent quarter and a 38.17% gain over the past twelve months. Analysts have also raised next year’s EPS estimates by 7.74% in the last three months, a positive sign for future results.
• Profit Margin Improvement: The latest quarter’s profit margin of 31.25% is much higher than the previous quarter’s 14.07%, showing better operational efficiency.
• Free Cash Flow Growth: FCF per share increased 42.44% over the past year, confirming the company’s ability to produce cash alongside earnings.

These numbers match the HGM Rating’s emphasis on growth speed, surprises, and estimate changes—key parts of the CANSLIM and Minervini methods discussed in the introduction. Stocks with these features often do well in rising markets, and UMBF’s fundamentals suggest it could keep this trend going.

Technical Strength and Setup Quality

UMBF’s Technical Rating of 7 and Setup Rating of 8, as seen in the full technical report, add to its appeal:

• Trend Stability: Both short-term and long-term trends are positive, with the stock staying above key moving averages (20-day, 50-day, 100-day, and 200-day SMAs). This shows consistent buyer interest.
• Consolidation Pattern: The stock has moved between $105.51 and $114.39 over the past month, with clear support near $109.79. A move above resistance at $112.10 could signal further gains.
• Relative Strength: UMBF beats 70% of its peers in the Banks sector, which has held up well in rising rate conditions.
• Pocket Pivot Signal: Recent trading volume hints at buying activity, a positive sign for momentum traders.

The Setup Rating focuses on the value of a clear consolidation, and UMBF’s chart—with well-defined support and resistance levels—offers a solid entry point for breakout traders.

Why This Combination Matters

Fast growth strategies work best when technicals back up fundamentals. UMBF’s earnings growth and rising estimates are supported by its price action, which shows the stock holding steady after a strong upward move. This alignment lowers the risk of buying into overhyped stocks, a common mistake in growth investing.

For investors looking for similar opportunities, the High Growth Momentum Breakout Setups screen provides a list of stocks matching these criteria.

Disclaimer: This analysis is not investment advice. Always do your own research or consult a financial advisor before making investment decisions.