The pursuit of high-growth momentum stocks is well served by a disciplined screening process that targets strong recent earnings acceleration, solid fundamental health, and a favorable price setup. The strategy outlined here combines two key ChartMill ratings—the High Growth Momentum Rating and the Technical Rating—with a Setup Rating filter. By focusing on securities that score above 7 on both the Technical and Setup fronts, and above 4 on the High Growth Momentum Rating, the goal is to pinpoint companies that not only demonstrate superior earnings and sales momentum but also possess a clean chart pattern for potential entry. This approach helps reduce the risk of buying a stock that is overextended while still catching it early in a promising acceleration phase.
Amer Sports Inc (NYSE:AS) recently passed this specific multi-layered screen, making it a worthwhile candidate for growth-focused traders. The company, a global manufacturer of sports equipment, apparel, and footwear, earns a solid High Growth Momentum Rating of 6—well above the threshold. This rating is built on several key fundamental metrics that align perfectly with the high-growth momentum methodology.
The company has demonstrated impressive and accelerating earnings per share (EPS) growth. Over the past trailing twelve months, EPS surged by 71.4%, while the last full fiscal year saw an even sharper increase of 120.5%. This acceleration is not a one-off event. Quarter-over-quarter comparisons show EPS rose 40.7% in the most recent quarter, following an 82.4% increase in the prior quarter. Even more encouraging for future expectations, analysts project EPS growth of 77.2% for the next quarter. This consistent upward movement in earnings, combined with a perfect 4-for-4 record of beating EPS estimates in the last four quarters (with an average beat of 56.7%), provides strong confirmation of the growth narrative.
Sales growth is equally solid, with revenue expanding 29.0% over the past year and quarterly sales growth consistently above 24% for the last four reported periods. The company has also successfully expanded its profit margins, moving from a profit margin of just 1.4% in the previous fiscal year to 6.5% in the most recent one. In the high-growth momentum framework, these factors—strong and accelerating earnings and sales, positive surprises, and expanding margins—are precisely the ingredients that often precede further price appreciation.
Turning to the technical picture, Amer Sports displays a setup that is conducive to a trade. The stock earns a Technical Rating of 7, reflecting a solid overall uptrend. According to the detailed technical analysis, both the short-term and long-term trends are positive, a crucial requirement for the growth momentum strategy. More importantly, the stock’s Setup Rating is an outstanding 8. This high score indicates a healthy consolidation pattern, meaning price action has been coiling tightly near recent highs rather than surging in a parabolic fashion.
The technical report identifies a clear resistance zone just above the current price, between $36.84 and $37.20, and a support zone below around $35.25 to $35.43. A suggested breakout entry level is above that resistance, with a stop-loss order placed beneath the support. This structure provides exactly what the method looks for: a defined risk/reward opportunity within an established uptrend. The presence of a recent "Pocket Pivot" signal—a technical indicator of institutional accumulation—adds further confidence to the setup.
For investors and traders seeking the next wave of high-growth leaders with favorable entries, this combination of accelerating fundamentals and a tight technical pattern is very attractive. To explore the full universe of stocks that currently meet these strict screening criteria, including other potential setups, you can access the High Growth Momentum Breakout Setups Screen to run the filter yourself and discover more candidates.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any trading decisions.
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Amer Sports Inc (NYSE:AS) Shows Strong Growth Momentum with Clean Technical Setup
The pursuit of high-growth momentum stocks is well served by a disciplined screening process that targets strong recent earnings acceleration, solid fundamental health, and a favorable price setup. The strategy outlined here combines two key ChartMill ratings—the High Growth Momentum Rating and the Technical Rating—with a Setup Rating filter. By focusing on securities that score above 7 on both the Technical and Setup fronts, and above 4 on the High Growth Momentum Rating, the goal is to pinpoint companies that not only demonstrate superior earnings and sales momentum but also possess a clean chart pattern for potential entry. This approach helps reduce the risk of buying a stock that is overextended while still catching it early in a promising acceleration phase.
Amer Sports Inc (NYSE:AS) recently passed this specific multi-layered screen, making it a worthwhile candidate for growth-focused traders. The company, a global manufacturer of sports equipment, apparel, and footwear, earns a solid High Growth Momentum Rating of 6—well above the threshold. This rating is built on several key fundamental metrics that align perfectly with the high-growth momentum methodology.
The company has demonstrated impressive and accelerating earnings per share (EPS) growth. Over the past trailing twelve months, EPS surged by 71.4%, while the last full fiscal year saw an even sharper increase of 120.5%. This acceleration is not a one-off event. Quarter-over-quarter comparisons show EPS rose 40.7% in the most recent quarter, following an 82.4% increase in the prior quarter. Even more encouraging for future expectations, analysts project EPS growth of 77.2% for the next quarter. This consistent upward movement in earnings, combined with a perfect 4-for-4 record of beating EPS estimates in the last four quarters (with an average beat of 56.7%), provides strong confirmation of the growth narrative.
Sales growth is equally solid, with revenue expanding 29.0% over the past year and quarterly sales growth consistently above 24% for the last four reported periods. The company has also successfully expanded its profit margins, moving from a profit margin of just 1.4% in the previous fiscal year to 6.5% in the most recent one. In the high-growth momentum framework, these factors—strong and accelerating earnings and sales, positive surprises, and expanding margins—are precisely the ingredients that often precede further price appreciation.
Turning to the technical picture, Amer Sports displays a setup that is conducive to a trade. The stock earns a Technical Rating of 7, reflecting a solid overall uptrend. According to the detailed technical analysis, both the short-term and long-term trends are positive, a crucial requirement for the growth momentum strategy. More importantly, the stock’s Setup Rating is an outstanding 8. This high score indicates a healthy consolidation pattern, meaning price action has been coiling tightly near recent highs rather than surging in a parabolic fashion.
The technical report identifies a clear resistance zone just above the current price, between $36.84 and $37.20, and a support zone below around $35.25 to $35.43. A suggested breakout entry level is above that resistance, with a stop-loss order placed beneath the support. This structure provides exactly what the method looks for: a defined risk/reward opportunity within an established uptrend. The presence of a recent "Pocket Pivot" signal—a technical indicator of institutional accumulation—adds further confidence to the setup.
For investors and traders seeking the next wave of high-growth leaders with favorable entries, this combination of accelerating fundamentals and a tight technical pattern is very attractive. To explore the full universe of stocks that currently meet these strict screening criteria, including other potential setups, you can access the High Growth Momentum Breakout Setups Screen to run the filter yourself and discover more candidates.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any trading decisions.
Read full article here »