UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) – A Strong Growth Stock with a Technical Breakout Pattern

UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a promising chart pattern, making it worth a closer look.

Fundamental Strengths

• Growth Potential: UTI has demonstrated strong earnings growth, with EPS increasing by 188.89% over the past year. Revenue has also grown at a steady pace, up 14.69% year-over-year.
• Profitability: The company’s Return on Equity (19.54%) and Return on Invested Capital (10.38%) are well above industry averages, indicating efficient capital use.
• Valuation: While the P/E ratio of 30.63 suggests a premium, the PEG ratio (accounting for growth) points to reasonable valuation levels.
• Financial Health: UTI maintains a solid balance sheet with a manageable debt-to-equity ratio of 0.31 and an Altman-Z score of 4.04, signaling low bankruptcy risk.

Technical Setup

• Breakout Potential: The stock is consolidating near a key resistance zone between $33.39 and $33.46. A breakout above this level could signal further upside.
• Support Levels: Multiple support zones exist below, including a strong area around $30.93-$31.73, providing a potential stop-loss reference.
• Trend Strength: The long-term trend remains positive, though short-term momentum has weakened slightly. A decisive move above resistance could reignite upward momentum.

For a deeper dive into UTI’s fundamentals, review the full fundamental report. The technical analysis report provides additional insights on price action and key levels.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.