Exploring CLEAR SECURE INC -CLASS A (NYSE:YOU)'s high growth characteristics.

Our stock screener has detected a potential breakout setup on CLEAR SECURE INC -CLASS A (NYSE:YOU). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:YOU.

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, YOU scores 7 out of 10 in our technical rating. Although YOU has been one of the better performers in the overall market, we have a mixed picture in the medium term time frame. But recently some decent action can be observed again.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• YOU is one of the better performing stocks in the Software industry, it outperforms 77% of 279 stocks in the same industry.
• In the last month YOU has a been trading in the 21.94 - 28.04 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that YOU is one of the better performing stocks in the market, outperforming 86% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• YOU is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

For an up to date full technical analysis you can check the technical report of YOU

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, YOU has a 8 as its setup rating, indicating its current consolidation status.

YOU has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 27.62. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.74, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for YOU in the last couple of days, which is a good sign.

Unpacking YOU's High Growth Momentum Rating

ChartMill assigns a High Growth Momentum Rating (HGM) to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth and profitability elements, including EPS and revenue growth, accelleration, surprises and revisions. In the case of YOU, the assigned 6 reflects its growth potential:

Earnings Momentum

• YOU has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 429.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• Accelerating EPS growth for YOU: the current Q2Q growth of 429.0% exceeds the previous quarter Q2Q growth of 42.86%.
• Over the past year, YOU has demonstrated 208.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The quarter-to-quarter (Q2Q) revenue growth of 20.65% of YOU has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• With notable 1-year revenue growth of 25.56%, YOU exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• YOU has seen a 6.45% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• YOU has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, YOU demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• In the past year YOU has expanded its Profit Margin, which demonstrates increasing profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, YOU demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• In terms of Return on Equity(ROE), YOU is performing well, achieving a 85.54% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• With a Debt/Equity ratio of 0.0, YOU maintains a solid financial position with controlled leverage.

Market Strength

• YOU has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 86.27 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.