For investors looking to join solid fundamental growth with positive technical patterns, a multi-factor screening method can be a useful instrument. One approach finds stocks that show high growth momentum, measured by earnings and sales acceleration, while also showing sound technical condition and a positive price arrangement ready for a possible breakout. This method tries to find companies that are not only fundamentally speeding up but are also in a positive spot from a price movement view, possibly providing a combination of reasons for future price gains.
WesBanco Inc (NASDAQ:WSBC) appears from such a screen, making an argument for review by growth-focused investors. The regional bank holding company, serving customers in a number of Midwestern and Mid-Atlantic states, shows a positive mix of speeding financial results and good technical form.
Fundamental Growth Momentum
The center of the high growth momentum view for WSBC is in its recent and expected financial results. The company's earnings and sales growth have shown clear speeding up, a main idea of momentum investing that points to better business activity.
- Earnings Per Share (EPS) Growth: The company's trailing twelve-month (TTM) EPS is $3.35, showing a large year-over-year growth of 45.7%. More notably, the quarterly momentum is clear. While growth in the latest quarter was a solid 18.3%, it came after very high growth rates of 74.1% and 85.7% in the two earlier quarters. This sequence of very strong recent results is a sign of positive earnings momentum.
- Sales/Revenue Growth: The top-line story is also positive. TTM revenue has risen by 61.8% year-over-year. Quarterly sales growth has been very strong, with the last three reported quarters showing gains of 75.1%, 73.5%, and 76.2%, in order. This steadiness in high-double-digit revenue growth points to solid business activity.
- Earnings Quality and Revisions: The company has a full record of exceeding EPS estimates over the past four quarters, with an average beat of 12.5%. While analyst changes for next year's estimates have seen a small negative change lately, the basic growth path stays firmly positive based on reported numbers. Also, free cash flow per share has grown by 34.6% over the past year, backing the quality of earnings.
This mix of speeding EPS and sales, along with steady positive surprises, matches what high growth momentum investors look for: finding companies going through a clear, real turn in their business fundamentals.
Technical Strength and Setup Quality
While sound fundamentals give the "why," technical study can help with the "when." According to the detailed ChartMill Technical Report, WSBC scores well on both technical condition and setup quality, each getting an 8 out of 10.
Technical Health (Rating: 8/10) The stock is in a confirmed uptrend across several timeframes, a key base for momentum plays.
- Both its short-term and long-term trends are scored as positive.
- The stock is trading above all its main moving averages (20, 50, 100, and 200-day SMAs), and each of these averages is itself in a rising pattern.
- It is trading in the higher part of its 52-week range, showing continued buying interest and doing better than 67% of all stocks in the market over the past year.
Setup Quality (Rating: 8/10) Maybe more important for entry timing, the stock is now showing a positive setup pattern.
- The analysis notes that prices have been moving sideways lately with lower volatility, which often comes before a new price move.
- A recent "Pocket Pivot" signal, a price move up on higher volume than the highest down volume of the previous 10 days, suggests buying by larger participants.
- The report finds a clear support area below the current price (near $34.98) and a close resistance level at $35.30. This narrow band between support and resistance describes a possible breakout area, allowing for clear risk control with a stop-loss order set below support.
This technical picture answers the key question for traders: the stock is in a strong trend (technical rating) and is now moving sideways in a consolidation within that trend, offering a possible entry point on a breakout (setup rating).
Conclusion
WesBanco Inc makes an interesting case where fundamental momentum and technical position meet. For investors using a high growth momentum method, the company's speeding EPS and sales growth, driven by its banking operations, give a fundamental reason. The stock's high technical and setup scores suggest the market is seeing this improvement, with the price movement consolidating in a sound way within a clear uptrend, possibly preparing for its next move higher.
This mix is exactly what specific screens are made to find: companies where better business fundamentals are being matched by positive market activity.
Interested in finding more stocks that match this high-growth momentum breakout profile? You can run the screen yourself 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. Investors should do their own research and think about their personal money situation, risk comfort, and investment goals before making any investment choice. Past results do not show future outcomes.
