Mueller Water Products Inc-A (NYSE:MWA) – A High Growth Momentum Stock with Strong Technical Setup

High growth momentum investing focuses on companies demonstrating accelerating earnings, revenue growth, and positive analyst revisions. These stocks often show strong price momentum, making them attractive for investors seeking rapid gains. Mueller Water Products Inc-A (NYSE:MWA) fits this profile, combining solid growth metrics with a favorable technical setup.

Why MWA Fits High Growth Momentum Criteria

Mueller Water Products Inc-A (NYSE:MWA) has a High Growth Momentum Rating of 6, reflecting strong earnings and sales growth, positive surprises, and upward analyst revisions. Key highlights include:

• EPS Growth (TTM): 70.3% year-over-year, with recent quarterly growth at 92.3%.
• Revenue Growth (TTM): 11.9%, with the latest quarter showing an 18.7% increase.
• Free Cash Flow Growth: A staggering 721% over the past year.
• Consistent Earnings Beats: The company has surpassed EPS estimates in the last four quarters by an average of 44.3%.
• Expanding Profit Margins: The latest quarter reported an 11.6% profit margin, up from 2.9% in the prior quarter.

These metrics indicate strong business momentum, making MWA a candidate for high growth investors.

Technical Setup Supports a Potential Breakout

The Technical Rating of 8 and Setup Rating of 7 suggest MWA is in a favorable position for a breakout. Key technical observations:

• Long-term trend is positive, while the short-term trend is neutral.
• Support levels are found between $24.93-$26.15, providing a cushion for pullbacks.
• Resistance sits near $27.32, with a breakout above this level potentially signaling further upside.
• Relative strength is strong, outperforming 95% of stocks in the Machinery industry.

For a deeper analysis, review the full technical report here.

Trading Considerations

A potential trade setup could involve:

• Entry: Above $27.33 (breakout level).
• Stop-loss: Below $24.92 (support zone).
• Risk/reward: The trade carries an 8.8% downside risk, making position sizing crucial.

Final Thoughts

Mueller Water Products Inc-A (NYSE:MWA) presents a compelling case for high growth momentum investors, backed by strong earnings acceleration and a solid technical foundation. While the setup is promising, investors should conduct further due diligence before committing capital.

For more high-growth momentum stocks with strong technical setups, explore additional results here.