We screened for stocks that combine strong fundamental growth with a favorable technical picture, specifically looking for securities with a ChartMill Setup Rating above 7, a Technical Analysis (TA) Rating above 7, and a High Growth Momentum (HGM) Rating above 4. This approach is rooted in the CANSLIM and Minervini-style growth investing frameworks, which prioritize both earnings momentum and well-defined chart patterns. The idea is straightforward: a stock with accelerating earnings and sales is more likely to sustain a breakout when it’s also consolidating in a tight price range, offering a defined entry point and reasonable risk. One stock that emerged from this screen is Terreno Realty Corp (NYSE:TRNO), a real estate investment trust focused on industrial properties in major U.S. coastal markets.
Recent Performance and High Growth Momentum Rating
For growth investors, the High Growth Momentum Rating serves as a shorthand for identifying stocks with strong short-term earnings momentum and accelerating fundamentals. Terreno Realty earns a score of 6 out of 10 on this metric, which is significant given how stringent the scoring system is—achieving a perfect 10 across every sub-category is nearly impossible. The rating draws from several key inputs, and TRNO shows strength in multiple areas.
The company’s earnings per share (EPS) over the last twelve months stands at $4.08, with EPS growth of 105% year-over-year on a TTM basis. That kind of expansion is impressive, but the quarterly progression tells a more nuanced story. Over the last four reported quarters, EPS growth against the same quarter the prior year was 143.2%, 170.3%, 94.8%, and most recently 40.4%. While the trend shows a deceleration in the latest quarter, the absolute growth rates remain strong. In addition, the company has beaten EPS estimates in each of the last four quarters, with an average beat of 142.8%—a clear signal of positive earnings surprises, which is a key component of the HGM rating.
Sales growth also supports the narrative. Revenue grew 20.2% over the trailing twelve months, and each of the last four quarters saw positive revenue growth versus the prior year, ranging from 12.7% to 32.6%. The fact that analysts have revised their next-year EPS estimates upward by 19.1% over the last three months adds further conviction that the momentum may persist. Profit margins, while fluctuating quarter-to-quarter, have expanded significantly on a full-year basis: 84.2% in the most recent fiscal year versus 48% the year prior, indicating operating leverage.
Technical Strength and Setup Quality
Fundamentals alone aren’t enough in a momentum-driven strategy. The chart setup matters, because even a great company can be a poor trade if the entry point is wrong. That’s where the ChartMill Technical Rating and Setup Quality Rating come into play. Both ratings for TRNO currently sit at 7 out of 10.
The technical rating of 7 reflects that the stock is in a healthy uptrend across multiple timeframes. The long-term trend is positive, the short-term trend is positive, and the stock is trading near its 52-week high of $69.47. Notably, while the S&P 500’s short-term trend is positive, its long-term trend is neutral—meaning TRNO is outperforming the broader market on a trend basis. All major moving averages (20-, 50-, 100-, and 200-day SMAs) are rising, and the stock is trading above each of them.
The setup quality score of 7 indicates that TRNO has been forming a constructive consolidation pattern. Volatility has been declining, and the stock has been trading in a relatively tight range. The technical report identifies a support zone between $65.71 and $66.53, which is reinforced by multiple trend lines and moving averages. On the upside, resistance sits between $67.53 and $68.77.
For traders looking for a specific entry point, the suggested breakout level is $68.78, with a stop-loss placed near $65.70. That represents a maximum risk of roughly 4.5% per share. It’s also worth noting that a recent Pocket Pivot signal was detected, an accumulation pattern where a stock moves up on volume higher than the maximum down volume in the prior ten days. This adds a layer of institutional interest to the technical picture.
For a more detailed breakdown of the support and resistance zones, as well as the full technical analysis, you can view the complete report here.
Valuation Metrics and Analyst Views
Terreno Realty’s valuation is best understood in the context of its REIT structure, where funds from operations (FFO) is often more relevant than P/E ratios. However, the EPS growth trajectory—from a negative -31% in FY-3 to over 100% in the most recent fiscal year—shows a dramatic turnaround. The free cash flow per share of $1.53 also jumped by 2,785% year-over-year, which is an extreme outlier but nonetheless highlights the operational efficiency gains.
Analysts appear to be taking notice. The 19% upward revision in next-year EPS estimates over the last three months is a clear bullish signal. Revenue estimates for the next year have been revised up by a more modest 0.8%, but the combination of margin expansion and upward earnings revisions is exactly what growth investors look for.
The Screening Approach: Combining Fundamentals and Technicals
The screen that produced TRNO is designed to filter for stocks that have both the fundamental acceleration to drive momentum and the chart structure to offer a favorable risk/reward trade. A Setup Rating above 7 ensures the stock isn’t overextended; a TA Rating above 7 ensures the trend is your friend; and an HGM Rating above 4 ensures the company is growing at an above-average clip. While no single screen guarantees success, this combination reduces the likelihood of buying into a stock that is either deteriorating fundamentally or extended technically.
If you want to explore other stocks that fit this profile, you can run the same screen yourself and see the latest results.
Click here to view the current High Growth Momentum Breakout Setups screen
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All trading involves risk. You should conduct your own analysis and consult with a financial advisor before making any investment decisions.
Read full article here »
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Terreno Realty Corp (NYSE:TRNO): A High Growth Momentum Breakout Setup
We screened for stocks that combine strong fundamental growth with a favorable technical picture, specifically looking for securities with a ChartMill Setup Rating above 7, a Technical Analysis (TA) Rating above 7, and a High Growth Momentum (HGM) Rating above 4. This approach is rooted in the CANSLIM and Minervini-style growth investing frameworks, which prioritize both earnings momentum and well-defined chart patterns. The idea is straightforward: a stock with accelerating earnings and sales is more likely to sustain a breakout when it’s also consolidating in a tight price range, offering a defined entry point and reasonable risk. One stock that emerged from this screen is Terreno Realty Corp (NYSE:TRNO), a real estate investment trust focused on industrial properties in major U.S. coastal markets.
Recent Performance and High Growth Momentum Rating
For growth investors, the High Growth Momentum Rating serves as a shorthand for identifying stocks with strong short-term earnings momentum and accelerating fundamentals. Terreno Realty earns a score of 6 out of 10 on this metric, which is significant given how stringent the scoring system is—achieving a perfect 10 across every sub-category is nearly impossible. The rating draws from several key inputs, and TRNO shows strength in multiple areas.
The company’s earnings per share (EPS) over the last twelve months stands at $4.08, with EPS growth of 105% year-over-year on a TTM basis. That kind of expansion is impressive, but the quarterly progression tells a more nuanced story. Over the last four reported quarters, EPS growth against the same quarter the prior year was 143.2%, 170.3%, 94.8%, and most recently 40.4%. While the trend shows a deceleration in the latest quarter, the absolute growth rates remain strong. In addition, the company has beaten EPS estimates in each of the last four quarters, with an average beat of 142.8%—a clear signal of positive earnings surprises, which is a key component of the HGM rating.
Sales growth also supports the narrative. Revenue grew 20.2% over the trailing twelve months, and each of the last four quarters saw positive revenue growth versus the prior year, ranging from 12.7% to 32.6%. The fact that analysts have revised their next-year EPS estimates upward by 19.1% over the last three months adds further conviction that the momentum may persist. Profit margins, while fluctuating quarter-to-quarter, have expanded significantly on a full-year basis: 84.2% in the most recent fiscal year versus 48% the year prior, indicating operating leverage.
Technical Strength and Setup Quality
Fundamentals alone aren’t enough in a momentum-driven strategy. The chart setup matters, because even a great company can be a poor trade if the entry point is wrong. That’s where the ChartMill Technical Rating and Setup Quality Rating come into play. Both ratings for TRNO currently sit at 7 out of 10.
The technical rating of 7 reflects that the stock is in a healthy uptrend across multiple timeframes. The long-term trend is positive, the short-term trend is positive, and the stock is trading near its 52-week high of $69.47. Notably, while the S&P 500’s short-term trend is positive, its long-term trend is neutral—meaning TRNO is outperforming the broader market on a trend basis. All major moving averages (20-, 50-, 100-, and 200-day SMAs) are rising, and the stock is trading above each of them.
The setup quality score of 7 indicates that TRNO has been forming a constructive consolidation pattern. Volatility has been declining, and the stock has been trading in a relatively tight range. The technical report identifies a support zone between $65.71 and $66.53, which is reinforced by multiple trend lines and moving averages. On the upside, resistance sits between $67.53 and $68.77.
For traders looking for a specific entry point, the suggested breakout level is $68.78, with a stop-loss placed near $65.70. That represents a maximum risk of roughly 4.5% per share. It’s also worth noting that a recent Pocket Pivot signal was detected, an accumulation pattern where a stock moves up on volume higher than the maximum down volume in the prior ten days. This adds a layer of institutional interest to the technical picture.
For a more detailed breakdown of the support and resistance zones, as well as the full technical analysis, you can view the complete report here.
Valuation Metrics and Analyst Views
Terreno Realty’s valuation is best understood in the context of its REIT structure, where funds from operations (FFO) is often more relevant than P/E ratios. However, the EPS growth trajectory—from a negative -31% in FY-3 to over 100% in the most recent fiscal year—shows a dramatic turnaround. The free cash flow per share of $1.53 also jumped by 2,785% year-over-year, which is an extreme outlier but nonetheless highlights the operational efficiency gains.
Analysts appear to be taking notice. The 19% upward revision in next-year EPS estimates over the last three months is a clear bullish signal. Revenue estimates for the next year have been revised up by a more modest 0.8%, but the combination of margin expansion and upward earnings revisions is exactly what growth investors look for.
The Screening Approach: Combining Fundamentals and Technicals
The screen that produced TRNO is designed to filter for stocks that have both the fundamental acceleration to drive momentum and the chart structure to offer a favorable risk/reward trade. A Setup Rating above 7 ensures the stock isn’t overextended; a TA Rating above 7 ensures the trend is your friend; and an HGM Rating above 4 ensures the company is growing at an above-average clip. While no single screen guarantees success, this combination reduces the likelihood of buying into a stock that is either deteriorating fundamentally or extended technically.
If you want to explore other stocks that fit this profile, you can run the same screen yourself and see the latest results.
Click here to view the current High Growth Momentum Breakout Setups screen
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All trading involves risk. You should conduct your own analysis and consult with a financial advisor before making any investment decisions.
Read full article here »