The strategy behind this selection combines two well-established approaches: high growth momentum investing and technical breakout setups. The idea is to find companies that not only demonstrate strong and accelerating earnings and sales growth, key traits of the high-growth momentum style popularized by CANSLIM and Minervini methodologies, but also exhibit solid technical health and a favorable chart pattern for entry. By filtering for stocks with a High Growth Momentum (HGM) Rating above 4, a Technical Rating above 7, and a Setup Rating above 7, we aim to identify names where strong fundamentals are paired with a stock that is trending well and forming a consolidation pattern that could precede a breakout.
Lattice Semiconductor Corp (NASDAQ:LSCC) has emerged from this screen, earning a HGM Rating of 6, a Technical Rating of 10, and a Setup Rating of 8. These scores suggest that the company fits the profile of a high-growth momentum stock that is also presenting a technically sound trading opportunity.
Earnings and Sales Momentum
The core of the HGM Rating is earnings and sales acceleration, and LSCC’s recent numbers are notable. Over the last year, the company has delivered EPS (TTM) of $1.25, representing year-over-year (TTM) growth of 42%. More importantly, the growth rate has been accelerating sharply in recent quarters:
- EPS Growth Q2Q (last quarter vs. year-ago): +86.4%
- EPS Growth Q2Q (previous quarter vs. year-ago): +68.4%
- EPS Growth Q2Q (two quarters ago vs. year-ago): +16.7%
This sequential acceleration is a hallmark of a high-growth momentum stock. Sales growth is following a similar pattern, with last quarter's revenue up 42.2% year-over-year, also accelerating from the prior quarter’s 24.2% and 4.9% growth rates.
Looking ahead, analyst estimates are supportive. The projected EPS growth for the next quarter is an additional +88.7% year-over-year, while the next-year EPS estimate has been revised upward by 16% over the last three months. These positive revisions and the accelerating growth trajectory are exactly the type of catalysts the HGM rating is designed to capture.
The Technical Picture: Strength and a Setup
A stock with great fundamentals still needs a good chart, and LSCC’s technical assessment is notably strong. The complete technical analysis report assigns it the highest technical rating of 10 out of 10.
- Trend Health: Both the long and short-term trends are positive. The stock has outperformed 97% of all other stocks on a yearly basis and is trading near its 52-week high, which signals leadership relative to the broader market.
- Setup Quality: The Setup Rating of 8 indicates the stock has entered a consolidation phase. Prices have been trading in a relatively tight range (roughly $130-$157) after a strong run, and volatility has declined. This pattern offers a potential entry point once the stock breaks above a nearby resistance zone starting at $153.73. The report also notes that large players have been showing interest recently, and a pocket pivot signal (a price/volume accumulation pattern) has been observed, both positive technical signals.
For the high-growth investor, the logic is clear: LSCC has the fundamental acceleration that provides the fuel, and it is currently pausing in a healthy consolidation pattern that provides a potential launchpad for the next leg higher.
Valuation Metrics and Caution
While LSCC scores well on momentum and technicals, it is trading at a price that reflects that momentum. The stock is near its 52-week high and carries a premium valuation, which is typical for names in this screen but also increases risk. The suggested trade setup based on the technical report proposes an entry above the $155.29 resistance zone with a stop loss at $141.77, implying a risk of about 8.7% from entry to exit.
Where to Find More Setups
This screen is designed to be run regularly, as the best setups can change daily. For investors looking to identify more candidates that combine high growth momentum with strong technical setups, you can explore the complete list of results by running the screen yourself.
Click here to see the latest High Growth Momentum Breakout Setups results
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All trading and investment decisions carry risk. Please conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Read full article here »
View the Zacks #1 Rank List
Lattice Semiconductor Corp (NASDAQ:LSCC) High Growth Momentum Breakout Setup
The strategy behind this selection combines two well-established approaches: high growth momentum investing and technical breakout setups. The idea is to find companies that not only demonstrate strong and accelerating earnings and sales growth, key traits of the high-growth momentum style popularized by CANSLIM and Minervini methodologies, but also exhibit solid technical health and a favorable chart pattern for entry. By filtering for stocks with a High Growth Momentum (HGM) Rating above 4, a Technical Rating above 7, and a Setup Rating above 7, we aim to identify names where strong fundamentals are paired with a stock that is trending well and forming a consolidation pattern that could precede a breakout.
Lattice Semiconductor Corp (NASDAQ:LSCC) has emerged from this screen, earning a HGM Rating of 6, a Technical Rating of 10, and a Setup Rating of 8. These scores suggest that the company fits the profile of a high-growth momentum stock that is also presenting a technically sound trading opportunity.
Earnings and Sales Momentum
The core of the HGM Rating is earnings and sales acceleration, and LSCC’s recent numbers are notable. Over the last year, the company has delivered EPS (TTM) of $1.25, representing year-over-year (TTM) growth of 42%. More importantly, the growth rate has been accelerating sharply in recent quarters:
This sequential acceleration is a hallmark of a high-growth momentum stock. Sales growth is following a similar pattern, with last quarter's revenue up 42.2% year-over-year, also accelerating from the prior quarter’s 24.2% and 4.9% growth rates.
Looking ahead, analyst estimates are supportive. The projected EPS growth for the next quarter is an additional +88.7% year-over-year, while the next-year EPS estimate has been revised upward by 16% over the last three months. These positive revisions and the accelerating growth trajectory are exactly the type of catalysts the HGM rating is designed to capture.
The Technical Picture: Strength and a Setup
A stock with great fundamentals still needs a good chart, and LSCC’s technical assessment is notably strong. The complete technical analysis report assigns it the highest technical rating of 10 out of 10.
For the high-growth investor, the logic is clear: LSCC has the fundamental acceleration that provides the fuel, and it is currently pausing in a healthy consolidation pattern that provides a potential launchpad for the next leg higher.
Valuation Metrics and Caution
While LSCC scores well on momentum and technicals, it is trading at a price that reflects that momentum. The stock is near its 52-week high and carries a premium valuation, which is typical for names in this screen but also increases risk. The suggested trade setup based on the technical report proposes an entry above the $155.29 resistance zone with a stop loss at $141.77, implying a risk of about 8.7% from entry to exit.
Where to Find More Setups
This screen is designed to be run regularly, as the best setups can change daily. For investors looking to identify more candidates that combine high growth momentum with strong technical setups, you can explore the complete list of results by running the screen yourself.
Click here to see the latest High Growth Momentum Breakout Setups results
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All trading and investment decisions carry risk. Please conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Read full article here »