High growth momentum investors look for companies that not only deliver explosive earnings and sales growth, but also show signs that the trend is likely to continue—things like accelerating quarterly results, positive earnings surprises, and upward analyst revisions. At the same time, entering at the right moment is critical; buying a stock that is already extended often leads to giving back gains during the next pullback. By combining a strong ChartMill High Growth Momentum Rating with a solid technical and setup rating, we can narrow the field to names that offer both the fundamental catalyst and a favorable risk/reward entry point. Roku, Inc. (NASDAQ:ROKU) is a perfect example of a stock that checks all those boxes.
Why ROKU Scores on High Growth Momentum
The ChartMill High Growth Momentum Rating for ROKU comes in at 6 out of 10, comfortably above the threshold of 4 used in our screen. A closer look at the underlying numbers shows exactly why that score is deserved.
Earnings growth is staggering. The trailing twelve-month EPS sits at $1.33, representing year-over-year growth of 282%. Even more impressive is the recent quarterly acceleration: EPS in the most recent quarter grew 400% versus the same quarter last year, up from 321% in the prior quarter and 367% in the quarter before that. The current estimate for the next quarter points to a further surge of 770% year-over-year. That combination of extreme growth and acceleration is exactly what the momentum rating is built to capture.
Sales growth is strong and accelerating, too. Revenue rose 22.4% in the latest quarter compared to last year, building on growth rates of 16.1%, 14.0%, and 14.8% in the three preceding quarters. The company has beaten revenue estimates in three of the last four quarters, and analyst estimates have been revised upward by nearly 19% for next year’s EPS expectations over the past three months.
Profit margins are expanding. Net profit margin climbed from 0.9% four quarters ago to 6.9% in the most recent quarter, and from 1.9% in the last full fiscal year. Free cash flow per share of $3.62 rose nearly 26% over the past year, reinforcing the quality of earnings.
Consistent surprises drive confidence. ROKU has beaten EPS estimates in all four of the most recent quarters, with an average beat of 96.6%—a clear sign that the business is outperforming what analysts had modeled.
All of these factors—triple-digit EPS growth, accelerating sales, expanding margins, consistent surprises, and positive revisions—are the hallmarks of a stock that the High Growth Momentum Rating is designed to flag. A score of 6 may not look perfect on paper, but it reflects a very solid profile across all the key inputs.
Technical Strength and Setup Quality
Earnings momentum alone is not enough; the stock also needs to be in a strong uptrend and offer a reasonable entry point. ROKU’s technical picture is outstanding.
The stock earns a perfect ChartMill Technical Rating of 10 out of 10, placing it in the top tier of all stocks for technical health. Both the short-term and long-term trends are positive, and the stock is currently trading near its 52-week high of $148.88. Over the past year, ROKU has outperformed 91% of all stocks, with gains spread steadily across the period. It also leads within its industry, outperforming 89% of other Entertainment stocks.
The Setup Quality Rating is 7 out of 10, which indicates a decent consolidation pattern. The stock has been trading in a range between roughly $134 and $144 over the past month, and it recently closed at $143.82—just below a clearly defined resistance zone at $143.83. A breakout above that level would be a natural entry trigger. Support lies at $141.73–$143.66, giving a defined area for a stop loss. This kind of tight, high-level consolidation, coupled with excellent trend health, is exactly the kind of setup that momentum traders look for: a stock poised to resume its advance from a controlled base.
For the full breakdown of ROKU’s technical indicators, including support and resistance levels, moving averages, and relative strength, you can review the complete technical analysis report.
Bringing It All Together
ROKU combines a strong fundamental growth story with a top-tier technical profile and a workable setup. The triple-digit EPS growth, acceleration across quarters, expanding margins, and strong analyst revisions mean the High Growth Momentum Rating is well deserved. At the same time, a perfect technical rating and a setup score of 7 suggest the stock has both the trend and the consolidation needed for a potential breakout entry.
If you’d like to explore other stocks that meet similar criteria—high growth momentum plus a strong technical and setup profile—you can run the full High Growth Momentum Breakout Setups screen to find more candidates.
This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making any trading decisions.
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ROKU (NASDAQ:ROKU) Shows High Growth Momentum and Breakout Setup with Triple-Digit EPS Growth
High growth momentum investors look for companies that not only deliver explosive earnings and sales growth, but also show signs that the trend is likely to continue—things like accelerating quarterly results, positive earnings surprises, and upward analyst revisions. At the same time, entering at the right moment is critical; buying a stock that is already extended often leads to giving back gains during the next pullback. By combining a strong ChartMill High Growth Momentum Rating with a solid technical and setup rating, we can narrow the field to names that offer both the fundamental catalyst and a favorable risk/reward entry point. Roku, Inc. (NASDAQ:ROKU) is a perfect example of a stock that checks all those boxes.
Why ROKU Scores on High Growth Momentum
The ChartMill High Growth Momentum Rating for ROKU comes in at 6 out of 10, comfortably above the threshold of 4 used in our screen. A closer look at the underlying numbers shows exactly why that score is deserved.
Earnings growth is staggering. The trailing twelve-month EPS sits at $1.33, representing year-over-year growth of 282%. Even more impressive is the recent quarterly acceleration: EPS in the most recent quarter grew 400% versus the same quarter last year, up from 321% in the prior quarter and 367% in the quarter before that. The current estimate for the next quarter points to a further surge of 770% year-over-year. That combination of extreme growth and acceleration is exactly what the momentum rating is built to capture.
Sales growth is strong and accelerating, too. Revenue rose 22.4% in the latest quarter compared to last year, building on growth rates of 16.1%, 14.0%, and 14.8% in the three preceding quarters. The company has beaten revenue estimates in three of the last four quarters, and analyst estimates have been revised upward by nearly 19% for next year’s EPS expectations over the past three months.
Profit margins are expanding. Net profit margin climbed from 0.9% four quarters ago to 6.9% in the most recent quarter, and from 1.9% in the last full fiscal year. Free cash flow per share of $3.62 rose nearly 26% over the past year, reinforcing the quality of earnings.
Consistent surprises drive confidence. ROKU has beaten EPS estimates in all four of the most recent quarters, with an average beat of 96.6%—a clear sign that the business is outperforming what analysts had modeled.
All of these factors—triple-digit EPS growth, accelerating sales, expanding margins, consistent surprises, and positive revisions—are the hallmarks of a stock that the High Growth Momentum Rating is designed to flag. A score of 6 may not look perfect on paper, but it reflects a very solid profile across all the key inputs.
Technical Strength and Setup Quality
Earnings momentum alone is not enough; the stock also needs to be in a strong uptrend and offer a reasonable entry point. ROKU’s technical picture is outstanding.
The stock earns a perfect ChartMill Technical Rating of 10 out of 10, placing it in the top tier of all stocks for technical health. Both the short-term and long-term trends are positive, and the stock is currently trading near its 52-week high of $148.88. Over the past year, ROKU has outperformed 91% of all stocks, with gains spread steadily across the period. It also leads within its industry, outperforming 89% of other Entertainment stocks.
The Setup Quality Rating is 7 out of 10, which indicates a decent consolidation pattern. The stock has been trading in a range between roughly $134 and $144 over the past month, and it recently closed at $143.82—just below a clearly defined resistance zone at $143.83. A breakout above that level would be a natural entry trigger. Support lies at $141.73–$143.66, giving a defined area for a stop loss. This kind of tight, high-level consolidation, coupled with excellent trend health, is exactly the kind of setup that momentum traders look for: a stock poised to resume its advance from a controlled base.
For the full breakdown of ROKU’s technical indicators, including support and resistance levels, moving averages, and relative strength, you can review the complete technical analysis report.
Bringing It All Together
ROKU combines a strong fundamental growth story with a top-tier technical profile and a workable setup. The triple-digit EPS growth, acceleration across quarters, expanding margins, and strong analyst revisions mean the High Growth Momentum Rating is well deserved. At the same time, a perfect technical rating and a setup score of 7 suggest the stock has both the trend and the consolidation needed for a potential breakout entry.
If you’d like to explore other stocks that meet similar criteria—high growth momentum plus a strong technical and setup profile—you can run the full High Growth Momentum Breakout Setups screen to find more candidates.
This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making any trading decisions.
Read full article here »