Finding high-return investments demands a strategy that weds both company fundamentals and market timing. The "Strong Growth Stocks with good Technical Setup Ratings" screen is designed for exactly that. It filters for companies exhibiting strong earnings and revenue growth, solid financial health, and good profitability, then overlays these fundamentals with technical analysis to identify stocks forming a favorable entry pattern. The goal is to catch a growing business precisely when the market is offering a constructive risk-reward setup for a potential breakout. The screen serves as a starting point, and one stock that currently meets all these criteria is Howmet Aerospace Inc (NYSE:HWM).
Recent Performance and Technical Setup
Howmet Aerospace has been a standout performer, and the technical picture is currently attractive. The stock earns a perfect 10 out of 10 in our technical rating, a score driven by consistent strength in both the short and long term. The chart shows a clear and sustained positive trend across all major timeframes—from the 20-day moving average to the 200-day moving average—all of which are rising. This kind of alignment is a core pillar of the screening strategy, as it confirms the market's bullish conviction.
Beyond the trend, HWM is currently displaying a "bull flag" pattern. This occurs when a stock makes a powerful upward move and then pulls back slightly on lower volume, consolidating before a potential next leg higher. The Setup Rating of 7 out of 10 reflects this constructive phase. The analysis suggests an entry point just above the 10-day moving average with a stop loss placed below a key support zone identified near the $258 mark, offering a defined risk for investors looking to participate.
Fundamental Strength: The Growth Engine
The technical setup is only half the story; the reason HWM is in this screen in the first place is its exceptional fundamental profile. The company doesn't just have a nice chart; it has the business results to support it.
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Growth (Rating: 7/10): This is the engine of the screening strategy. HWM delivered 38.59% earnings per share (EPS) growth over the past year, with an average EPS growth rate of 30.93% over the last several years. Revenue is also expanding strongly, growing 14.24% in the last year. This kind of top- and bottom-line expansion is the very definition of a growth stock and the primary reason it was flagged.
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Profitability (Rating: 9/10): A growing company must also be efficient. HWM’s Profit Margin of 20.21% and Return on Equity of 31.56% both rank among the best in the Aerospace & Defense industry. These metrics confirm that the company is not just getting bigger, but is also getting better at converting its sales into profit—a crucial characteristic for sustained long-term growth.
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Health (Rating: 7/10): Strong growth is less risky when it's not built on a mountain of debt. HWM shows a solid financial foundation. It has an Altman-Z score of 10.73, which signals a very low risk of bankruptcy, and a healthy current ratio of 2.44. This financial stability allows the company to reinvest in its growth without being over-leveraged.
Valuation Metrics and Analyst Views
For a high-growth company, valuation is always a point of discussion. The current Price/Earnings (P/E) ratio of 66.14 is high, but this is consistent with the industry average for Aerospace & Defense. The high P/E is supported by the company's excellent profitability and strong expected earnings growth of 24.05% annually over the coming years. While the valuation is not cheap on a surface level, the growth trajectory provides a strong argument for the premium.
Where to Find More
HWM presents a clear case of a growth stock combining strong financials with a favorable technical setup. For investors looking to discover other opportunities that meet these specific criteria, a wider list of candidates is available.
For a complete list of stocks showing strong growth with good technical setup ratings, follow this link to the ChartMill Stock Screener.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any investment decisions.
Read full article here »
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Howmet Aerospace Inc (NYSE:HWM) Screens as a Strong Growth Stock with a Favorable Technical Setup
Finding high-return investments demands a strategy that weds both company fundamentals and market timing. The "Strong Growth Stocks with good Technical Setup Ratings" screen is designed for exactly that. It filters for companies exhibiting strong earnings and revenue growth, solid financial health, and good profitability, then overlays these fundamentals with technical analysis to identify stocks forming a favorable entry pattern. The goal is to catch a growing business precisely when the market is offering a constructive risk-reward setup for a potential breakout. The screen serves as a starting point, and one stock that currently meets all these criteria is Howmet Aerospace Inc (NYSE:HWM).
Recent Performance and Technical Setup
Howmet Aerospace has been a standout performer, and the technical picture is currently attractive. The stock earns a perfect 10 out of 10 in our technical rating, a score driven by consistent strength in both the short and long term. The chart shows a clear and sustained positive trend across all major timeframes—from the 20-day moving average to the 200-day moving average—all of which are rising. This kind of alignment is a core pillar of the screening strategy, as it confirms the market's bullish conviction.
Beyond the trend, HWM is currently displaying a "bull flag" pattern. This occurs when a stock makes a powerful upward move and then pulls back slightly on lower volume, consolidating before a potential next leg higher. The Setup Rating of 7 out of 10 reflects this constructive phase. The analysis suggests an entry point just above the 10-day moving average with a stop loss placed below a key support zone identified near the $258 mark, offering a defined risk for investors looking to participate.
Fundamental Strength: The Growth Engine
The technical setup is only half the story; the reason HWM is in this screen in the first place is its exceptional fundamental profile. The company doesn't just have a nice chart; it has the business results to support it.
Growth (Rating: 7/10): This is the engine of the screening strategy. HWM delivered 38.59% earnings per share (EPS) growth over the past year, with an average EPS growth rate of 30.93% over the last several years. Revenue is also expanding strongly, growing 14.24% in the last year. This kind of top- and bottom-line expansion is the very definition of a growth stock and the primary reason it was flagged.
Profitability (Rating: 9/10): A growing company must also be efficient. HWM’s Profit Margin of 20.21% and Return on Equity of 31.56% both rank among the best in the Aerospace & Defense industry. These metrics confirm that the company is not just getting bigger, but is also getting better at converting its sales into profit—a crucial characteristic for sustained long-term growth.
Health (Rating: 7/10): Strong growth is less risky when it's not built on a mountain of debt. HWM shows a solid financial foundation. It has an Altman-Z score of 10.73, which signals a very low risk of bankruptcy, and a healthy current ratio of 2.44. This financial stability allows the company to reinvest in its growth without being over-leveraged.
Valuation Metrics and Analyst Views
For a high-growth company, valuation is always a point of discussion. The current Price/Earnings (P/E) ratio of 66.14 is high, but this is consistent with the industry average for Aerospace & Defense. The high P/E is supported by the company's excellent profitability and strong expected earnings growth of 24.05% annually over the coming years. While the valuation is not cheap on a surface level, the growth trajectory provides a strong argument for the premium.
Where to Find More
HWM presents a clear case of a growth stock combining strong financials with a favorable technical setup. For investors looking to discover other opportunities that meet these specific criteria, a wider list of candidates is available.
For a complete list of stocks showing strong growth with good technical setup ratings, follow this link to the ChartMill Stock Screener.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any investment decisions.
Read full article here »