Combining strong earnings momentum with a well-defined technical setup is a core tenet of high growth momentum investing. The idea is to identify companies that are not only reporting accelerating financials but are also forming price consolidations that could lead to a breakout. By screening for a high ChartMill High Growth Momentum Rating alongside strong Technical and Setup Ratings, we aim to find candidates where the fundamental story and the chart pattern align.
One company currently passing this screen is Ascendis Pharma A/S (NASDAQ:ASND), a Denmark-based biopharmaceutical firm focused on developing therapies for rare diseases.
High Growth Momentum Fundamentals
For high growth momentum strategies, the emphasis is on short-term earnings acceleration, analyst revisions, and sales growth. Ascendis checks several of these boxes cleanly. The company’s EPS growth over the recent TTM year stands at 49.4%, but the more interesting story lies in the quarterly progression. Earnings grew 66.5% three quarters ago, slipped to 14.1% in the prior quarter, and then accelerated sharply to 51.3% in the most recent quarter. That kind of re-acceleration is a key positive signal for momentum models.
Looking ahead, the estimated EPS growth for the next quarter relative to the same quarter last year is a staggering 322.5%, suggesting the Street expects this momentum to intensify. This expectation is supported by the fact that analysts have revised their next-year EPS estimates higher by 230.3% over the last three months, a strong vote of confidence.
On the top line, revenue growth remains explosive. The most recent quarter showed sales up 144.3% year-over-year, following a streak of triple-digit growth in prior quarters. The company is also generating free cash flow, which grew 110.6% over the past year. This combination of accelerating earnings, massive forward estimates, solid revenue growth, and surging free cash flow forms the backbone of its High Growth Momentum Rating of 6 out of 10.
Technical Strength and Setup Quality
A high fundamental rating is only half the equation; the technical picture needs to support an entry. The full technical analysis report for Ascendis reveals a stock with a perfect technical rating of 10. The long and short-term trends are both positive, and the stock is trading above its rising 20, 50, 100, and 200-day moving averages. On a relative strength basis, it outperforms 88% of all stocks in the market, a hallmark of a market leader.
Crucially, the Setup Rating is a solid 7. The stock is currently forming a bull flag pattern—a pullback on lower volume after a strong upward move. This consolidation is tightening, which typically precedes a potential continuation move. The report identifies a key support zone between $259.79 and $260.99, providing a concrete area below which a stop-loss could be placed to manage risk. The suggested entry point is a buy stop order just above the 10-day moving average at $267.82, offering a controlled risk of around 3% on the trade.
Why This Combination Matters
The screen works because it filters for situations where strong earnings momentum is being recognized by the market through price strength, but the stock is pausing to form a base rather than being extended. Ascendis fits this profile: it has the fundamental firepower of a high growth name and the technical composure of a stock potentially ready to launch its next leg higher. The setup allows for a defined risk-reward scenario, which is essential even when dealing with high-conviction growth stories.
For a broader list of stocks that meet this combination of high growth momentum, strong technical health, and a favorable setup, you can explore the results of the High Growth Momentum Breakout Setups Screen here.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Please conduct your own due diligence and consider consulting a financial professional before making any trading decisions.
Read full article here »
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Ascendis Pharma (ASND) Shows High Growth Momentum With Bull Flag Breakout Setup
Combining strong earnings momentum with a well-defined technical setup is a core tenet of high growth momentum investing. The idea is to identify companies that are not only reporting accelerating financials but are also forming price consolidations that could lead to a breakout. By screening for a high ChartMill High Growth Momentum Rating alongside strong Technical and Setup Ratings, we aim to find candidates where the fundamental story and the chart pattern align.
One company currently passing this screen is Ascendis Pharma A/S (NASDAQ:ASND), a Denmark-based biopharmaceutical firm focused on developing therapies for rare diseases.
High Growth Momentum Fundamentals
For high growth momentum strategies, the emphasis is on short-term earnings acceleration, analyst revisions, and sales growth. Ascendis checks several of these boxes cleanly. The company’s EPS growth over the recent TTM year stands at 49.4%, but the more interesting story lies in the quarterly progression. Earnings grew 66.5% three quarters ago, slipped to 14.1% in the prior quarter, and then accelerated sharply to 51.3% in the most recent quarter. That kind of re-acceleration is a key positive signal for momentum models.
Looking ahead, the estimated EPS growth for the next quarter relative to the same quarter last year is a staggering 322.5%, suggesting the Street expects this momentum to intensify. This expectation is supported by the fact that analysts have revised their next-year EPS estimates higher by 230.3% over the last three months, a strong vote of confidence.
On the top line, revenue growth remains explosive. The most recent quarter showed sales up 144.3% year-over-year, following a streak of triple-digit growth in prior quarters. The company is also generating free cash flow, which grew 110.6% over the past year. This combination of accelerating earnings, massive forward estimates, solid revenue growth, and surging free cash flow forms the backbone of its High Growth Momentum Rating of 6 out of 10.
Technical Strength and Setup Quality
A high fundamental rating is only half the equation; the technical picture needs to support an entry. The full technical analysis report for Ascendis reveals a stock with a perfect technical rating of 10. The long and short-term trends are both positive, and the stock is trading above its rising 20, 50, 100, and 200-day moving averages. On a relative strength basis, it outperforms 88% of all stocks in the market, a hallmark of a market leader.
Crucially, the Setup Rating is a solid 7. The stock is currently forming a bull flag pattern—a pullback on lower volume after a strong upward move. This consolidation is tightening, which typically precedes a potential continuation move. The report identifies a key support zone between $259.79 and $260.99, providing a concrete area below which a stop-loss could be placed to manage risk. The suggested entry point is a buy stop order just above the 10-day moving average at $267.82, offering a controlled risk of around 3% on the trade.
Why This Combination Matters
The screen works because it filters for situations where strong earnings momentum is being recognized by the market through price strength, but the stock is pausing to form a base rather than being extended. Ascendis fits this profile: it has the fundamental firepower of a high growth name and the technical composure of a stock potentially ready to launch its next leg higher. The setup allows for a defined risk-reward scenario, which is essential even when dealing with high-conviction growth stories.
For a broader list of stocks that meet this combination of high growth momentum, strong technical health, and a favorable setup, you can explore the results of the High Growth Momentum Breakout Setups Screen here.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Please conduct your own due diligence and consider consulting a financial professional before making any trading decisions.
Read full article here »