The most effective high growth momentum setups emerge when strong earnings acceleration is paired with a constructive technical pattern. The idea is to find companies where the fundamentals are driving institutional demand, but the stock hasn’t yet broken out in a meaningful way from a period of consolidation. This intersection of strong underlying business momentum and a well-defined technical base offers a more favorable risk-reward profile. A recent screen that combined a ChartMill Setup Rating above 7, a Technical Rating above 7, and a High Growth Momentum Rating above 4 produced a list of candidates that meet this exact criteria, and Xometry, Inc. (NASDAQ:XMTR) stands out as a strong example.
For growth investors, the earnings trajectory is the primary engine. Xometry’s recent numbers are hard to ignore. The company posted trailing twelve-month EPS of $0.48, representing a staggering 433% year-over-year growth. This isn’t a one-quarter fluke; the last reported quarter saw EPS growth of 500% compared to the same quarter last year. Looking further back, the quarter prior to that delivered 166.67% growth, and three quarters ago, EPS surged 1000%. This kind of consistent, high-magnitude acceleration is precisely what the ChartMill High Growth Momentum Rating (a score of 6 out of 10 in this case) is designed to capture. The rating also accounts for earnings surprises, and Xometry has beaten EPS estimates in each of the last four quarters, averaging a beat of 39.36%. Revenue growth is also strong, with the most recent quarter showing a 35.88% year-over-year increase, and the company has beaten revenue estimates in all four of the last quarters as well.
A high growth momentum score, however, is only half the equation. The stock must also offer a sound entry point. According to the technical analysis report, Xometry receives a perfect Technical Rating of 10 out of 10. This reflects a strong and sustained uptrend, with the stock outperforming 98% of all stocks in the market over the past year. The long and short-term trends are both positive, and all major moving averages (20, 50, 100, and 200-day SMAs) are rising. Importantly, the Setup Rating is a solid 7, indicating that the stock is not overextended. The report notes that price has been consolidating in a range with reduced volatility, and a pocket pivot signal was recently observed—a classic sign of institutional accumulation. An aggressive, defined entry point exists just above the current resistance zone near $96.53, with a clearly defined stop-loss level below support at $93.93.
This combination of extreme earnings momentum and a high-quality technical consolidation is what makes the strategy work in practice. The growth fundamentals provide the catalyst, while the base-building phase offers a controlled risk environment. Xometry’s business model—an AI-powered marketplace that connects buyers with a vast network of manufacturing suppliers—provides the fundamental narrative to support the numbers, as the company benefits from trends like supply chain reshoring and the digitization of manufacturing. With a perfect technical rating and a setup that points to an imminent breakout, XMTR exemplifies the type of stock this screening method is built to uncover.
For investors interested in exploring similar opportunities, you can find more stocks that meet these criteria by running the High Growth Momentum Breakout Setups screen directly.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence and consider your own risk tolerance before making any trading decisions.
Read full article here »
View the Zacks #1 Rank List
Xometry (XMTR) Exhibits Powerful High Growth Momentum Breakout Setup (NASDAQ:XMTR)
The most effective high growth momentum setups emerge when strong earnings acceleration is paired with a constructive technical pattern. The idea is to find companies where the fundamentals are driving institutional demand, but the stock hasn’t yet broken out in a meaningful way from a period of consolidation. This intersection of strong underlying business momentum and a well-defined technical base offers a more favorable risk-reward profile. A recent screen that combined a ChartMill Setup Rating above 7, a Technical Rating above 7, and a High Growth Momentum Rating above 4 produced a list of candidates that meet this exact criteria, and Xometry, Inc. (NASDAQ:XMTR) stands out as a strong example.
For growth investors, the earnings trajectory is the primary engine. Xometry’s recent numbers are hard to ignore. The company posted trailing twelve-month EPS of $0.48, representing a staggering 433% year-over-year growth. This isn’t a one-quarter fluke; the last reported quarter saw EPS growth of 500% compared to the same quarter last year. Looking further back, the quarter prior to that delivered 166.67% growth, and three quarters ago, EPS surged 1000%. This kind of consistent, high-magnitude acceleration is precisely what the ChartMill High Growth Momentum Rating (a score of 6 out of 10 in this case) is designed to capture. The rating also accounts for earnings surprises, and Xometry has beaten EPS estimates in each of the last four quarters, averaging a beat of 39.36%. Revenue growth is also strong, with the most recent quarter showing a 35.88% year-over-year increase, and the company has beaten revenue estimates in all four of the last quarters as well.
A high growth momentum score, however, is only half the equation. The stock must also offer a sound entry point. According to the technical analysis report, Xometry receives a perfect Technical Rating of 10 out of 10. This reflects a strong and sustained uptrend, with the stock outperforming 98% of all stocks in the market over the past year. The long and short-term trends are both positive, and all major moving averages (20, 50, 100, and 200-day SMAs) are rising. Importantly, the Setup Rating is a solid 7, indicating that the stock is not overextended. The report notes that price has been consolidating in a range with reduced volatility, and a pocket pivot signal was recently observed—a classic sign of institutional accumulation. An aggressive, defined entry point exists just above the current resistance zone near $96.53, with a clearly defined stop-loss level below support at $93.93.
This combination of extreme earnings momentum and a high-quality technical consolidation is what makes the strategy work in practice. The growth fundamentals provide the catalyst, while the base-building phase offers a controlled risk environment. Xometry’s business model—an AI-powered marketplace that connects buyers with a vast network of manufacturing suppliers—provides the fundamental narrative to support the numbers, as the company benefits from trends like supply chain reshoring and the digitization of manufacturing. With a perfect technical rating and a setup that points to an imminent breakout, XMTR exemplifies the type of stock this screening method is built to uncover.
For investors interested in exploring similar opportunities, you can find more stocks that meet these criteria by running the High Growth Momentum Breakout Setups screen directly.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence and consider your own risk tolerance before making any trading decisions.
Read full article here »