For investors looking to join solid fundamental growth with good technical entry points, a multi-layered screening method can be very useful. This process selects for stocks showing firm earnings momentum and speeding growth, key signs of the high-growth momentum plan, while also displaying a positive technical arrangement. The aim is to find companies where strong business directions are meeting a price pattern that hints at a possible extension of the upward move, giving a systematic point to enter.
Vertiv Holdings Co-A (NYSE:VRT) appears as a candidate that fits these joined standards. The company, which supplies important digital infrastructure for data centers and communication networks, is located at the meeting point of several lasting technology shifts, such as cloud computing and artificial intelligence.
Fundamental Growth Momentum
The heart of a high-growth momentum plan is in finding companies with speeding business results. Vertiv’s latest financial reports show this trait plainly. The company’s High Growth Momentum (HGM) Rating of 6 shows firmness across several main growth and momentum measures:
- Earnings Speed Increase: The company has provided steadily high year-over-year EPS growth over recent quarters, with numbers of 76.8%, 48.8%, 41.8%, and 63.2% in the last four periods, in order. This sequence of maintained, high-level growth is a main goal for momentum investors.
- Sales Growth & Firmness: Revenue growth has also been solid and steady, with the last four quarters showing year-over-year gains of 25.8%, 24.2%, 35.1%, and 29.0%. This shows top-line momentum is wide and not dependent on one quarter.
- Positive Surprises and Changes: Vertiv has topped analyst EPS guesses in each of the last four quarters, with an average surprise of 14.9%. Also, analysts have changed their earnings guesses for the next year upward by more than 8% in the last three months, a sign of rising belief in the company’s short-term future.
- Growing Profitability: Maybe most importantly, the company’s quarterly profit margin has shown a sharp rise, going from 6.3% to 14.9% over the last four reported quarters. This shows a better ability to turn firm revenue into even firmer earnings, a main signal of operational efficiency and pricing strength.
These items together create an image of a company seeing strong fundamental momentum. For growth-focused investors, these speeding earnings, reliable beats, and margin rise are exactly the signs used to measure if a direction has real firmness and may continue.
Technical Firmness and Arrangement Quality
While firm fundamentals give the "why" for an investment, technical study can help with the "when." According to Vertiv’s detailed technical report, the stock shows a positive chart form.
The report gives Vertiv a Technical Rating of 9 out of 10, a sign of very good technical condition. Main supporting items include:
- Both long-term and short-term directions are rated as good.
- The stock is trading above all its main moving averages (20, 50, 100, and 200-day), which are all in a rising setup.
- It shows firm relative strength, doing better than about 85% of all stocks over the past year.
Importantly, next to this firm trend, the stock has formed a Setup Rating of 8. This high mark hints the price action has moved into a period of holding within the wider upward move, which can sometimes come before a new step up. The technical report states that "prices have been consolidating lately and the volatility has been reduced," forming a possible base. It finds a clear support area between $169.38 and $172.23, which gives a sensible zone for a stop-loss order, thus setting the risk of a possible trade. With little close resistance above the recent holding period, the technical arrangement matches the positive fundamental story.
A Meeting Opportunity
Vertiv shows the kind of opportunity looked for by this joined plan: a company with clear, speeding fundamental momentum that is also pausing to hold its gains on the chart. The high HGM Rating confirms the earnings and sales path that momentum investors look for, while the very good Technical and Setup Ratings suggest the stock’s price trend is in good shape and may be giving a structured entry point. This meeting tries to align the chance of fundamental continuation with a technical pattern that has in the past supported a restart of the trend.
Find More Possible Arrangements This study of Vertiv came from a specific screen joining growth momentum and technical arrangement standards. Investors curious to find other stocks that now fit similar measures can view the results using this High Growth Momentum Breakout Setups Screen.
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 study is based on given data and shows conditions at a specific time. All investments carry risk, including the possible loss of the main amount. Past results are not a guide for future results. You should do your own research and talk with a qualified financial advisor before making any investment choices.
