The approach behind this screen is rooted in the growth investing methodology popularized by strategies like CANSLIM and Mark Minervini. The idea is to target companies that not only show exceptional recent earnings and sales momentum but also present a favorable technical chart pattern. By requiring a High Growth Momentum (HGM) Rating above 4, a Technical Analysis (TA) Rating above 7, and a Setup Rating above 7, the goal is to identify stocks where strong fundamental growth is coinciding with a consolidation phase that could lead to a breakout. Lincoln Educational Services (NASDAQ:LINC) is a clear standout from this screen, earning a perfect TA Rating of 10, a Setup Rating of 8, and a solid HGM Rating of 6.
High Growth Momentum Fundamentals
Lincoln Educational Services’ recent financial performance is the core driver of its HGM Rating. The company’s earnings per share (EPS) growth over the last twelve months (TTM) sits at an impressive 89.7%, while its most recent quarter (Q2Q) EPS growth came in at a stunning 133.3%. This level of acceleration is precisely what high growth momentum investors look for. Furthermore, the company has beaten EPS estimates in each of the last four quarters, with the average beat reaching an enormous 186.1%. These consistent surprises and upward revisions (with EPS estimates for next year revised up by 12% over the last three months) are all key components that push the HGM score higher.
Revenue growth also supports the thesis. The most recent quarter saw a 22.5% year-over-year increase in sales, and the company has beaten revenue estimates in three of the last four quarters. While profit margins have seen some quarterly fluctuation, the TTM profit margin of 3.9% is healthy and has been trending higher compared to the prior year period. For growth investors, this combination of surging EPS, positive surprises, and rising analyst expectations is the fundamental bedrock that often precedes a sustained price move.
Technical Strength and Setup Quality
Where the stock really shines is in its technical setup. The technical report assigns a perfect Technical Rating of 10 out of 10, indicating the stock is in a strong, consistent uptrend. The report notes that LINC has outperformed 92% of all other stocks over the last year, and it is currently trading in the upper part of its 52-week range. The short-term and long-term trends are both positive, and the stock is trading well above its rising 50-day ($45.77) and 200-day ($31.57) simple moving averages.
More importantly for a breakout setup, the stock has a Setup Rating of 8 out of 10. This indicates that after a strong move, prices are currently consolidating, which is a classic pattern for a potential continuation. The technical analysis report identifies a clear resistance zone between $49.11 and $49.27. A buy stop order just above this level would target a breakout to new highs. Conversely, a support zone exists around $45.77 to $46.32, providing a logical location for a stop-loss order. The recent observation of a Pocket Pivot signal further strengthens the setup, as it indicates institutional accumulation during the consolidation.
Analyst Views
The fundamental story is also backed by a constructive analyst outlook. The positive estimates revisions mentioned earlier are a critical piece of the puzzle, as they suggest the sell-side is becoming more optimistic about the company’s trajectory. When strong earnings momentum aligns with rising analyst estimates, it often serves as a powerful catalyst, reinforcing the rationale for the high growth momentum score.
Screening for More Setups
This screen is designed to uncover stocks that combine strong fundamental momentum with a technically sound consolidation pattern. While LINC currently meets all of the criteria, the market is dynamic and new opportunities arise daily. To discover other stocks that are currently passing the same high growth momentum and technical breakout screen, click the link below.
Find more high growth momentum breakout setups here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consider your financial situation before making any investment decisions.
Read full article here »
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Lincoln Educational Services (NASDAQ:LINC) Scores Perfect Technical Rating in High Growth Momentum Breakout Setup
The approach behind this screen is rooted in the growth investing methodology popularized by strategies like CANSLIM and Mark Minervini. The idea is to target companies that not only show exceptional recent earnings and sales momentum but also present a favorable technical chart pattern. By requiring a High Growth Momentum (HGM) Rating above 4, a Technical Analysis (TA) Rating above 7, and a Setup Rating above 7, the goal is to identify stocks where strong fundamental growth is coinciding with a consolidation phase that could lead to a breakout. Lincoln Educational Services (NASDAQ:LINC) is a clear standout from this screen, earning a perfect TA Rating of 10, a Setup Rating of 8, and a solid HGM Rating of 6.
High Growth Momentum Fundamentals
Lincoln Educational Services’ recent financial performance is the core driver of its HGM Rating. The company’s earnings per share (EPS) growth over the last twelve months (TTM) sits at an impressive 89.7%, while its most recent quarter (Q2Q) EPS growth came in at a stunning 133.3%. This level of acceleration is precisely what high growth momentum investors look for. Furthermore, the company has beaten EPS estimates in each of the last four quarters, with the average beat reaching an enormous 186.1%. These consistent surprises and upward revisions (with EPS estimates for next year revised up by 12% over the last three months) are all key components that push the HGM score higher.
Revenue growth also supports the thesis. The most recent quarter saw a 22.5% year-over-year increase in sales, and the company has beaten revenue estimates in three of the last four quarters. While profit margins have seen some quarterly fluctuation, the TTM profit margin of 3.9% is healthy and has been trending higher compared to the prior year period. For growth investors, this combination of surging EPS, positive surprises, and rising analyst expectations is the fundamental bedrock that often precedes a sustained price move.
Technical Strength and Setup Quality
Where the stock really shines is in its technical setup. The technical report assigns a perfect Technical Rating of 10 out of 10, indicating the stock is in a strong, consistent uptrend. The report notes that LINC has outperformed 92% of all other stocks over the last year, and it is currently trading in the upper part of its 52-week range. The short-term and long-term trends are both positive, and the stock is trading well above its rising 50-day ($45.77) and 200-day ($31.57) simple moving averages.
More importantly for a breakout setup, the stock has a Setup Rating of 8 out of 10. This indicates that after a strong move, prices are currently consolidating, which is a classic pattern for a potential continuation. The technical analysis report identifies a clear resistance zone between $49.11 and $49.27. A buy stop order just above this level would target a breakout to new highs. Conversely, a support zone exists around $45.77 to $46.32, providing a logical location for a stop-loss order. The recent observation of a Pocket Pivot signal further strengthens the setup, as it indicates institutional accumulation during the consolidation.
Analyst Views
The fundamental story is also backed by a constructive analyst outlook. The positive estimates revisions mentioned earlier are a critical piece of the puzzle, as they suggest the sell-side is becoming more optimistic about the company’s trajectory. When strong earnings momentum aligns with rising analyst estimates, it often serves as a powerful catalyst, reinforcing the rationale for the high growth momentum score.
Screening for More Setups
This screen is designed to uncover stocks that combine strong fundamental momentum with a technically sound consolidation pattern. While LINC currently meets all of the criteria, the market is dynamic and new opportunities arise daily. To discover other stocks that are currently passing the same high growth momentum and technical breakout screen, click the link below.
Find more high growth momentum breakout setups here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consider your financial situation before making any investment decisions.
Read full article here »