High growth momentum investing isn't just about finding companies with explosive earnings—it's about identifying those that also have the market's technical backing and are setting up in a way that offers a manageable entry point. By screening for stocks with a strong ChartMill High Growth Momentum Rating (HGM) alongside elevated Technical and Setup Ratings, we aim to isolate names where strong fundamental momentum coincides with a healthy trend and a period of price consolidation that could precede the next leg higher. BrightSpring Health Services, Inc. (NASDAQ:BTSG) is a recent IPO that stands out across all three of these key dimensions, making it a candidate worth examining in detail.
High Growth Momentum Fundamentals in Focus
The High Growth Momentum Rating scores stocks on the earnings and sales metrics that matter most to growth investors. BTSG currently holds a solid HGM rating of 6 out of 10, and the underlying data reveals exactly why this score is warranted. The company is demonstrating a strong combination of triple-digit earnings growth, expanding profit margins, and consistent revenue acceleration.
Looking at the core growth drivers:
- Earnings Momentum: TTM EPS growth comes in at a striking 114.5% . The most recent quarter's EPS growth (Q2Q) is 105.3%, and this follows a prior quarter that delivered 50% growth. Even more notable is the quarter two periods ago, which showed an explosive 254.5% EPS growth. Looking ahead, analysts currently estimate EPS growth of 83.9% for the next quarter relative to last year.
- Sales Acceleration: Revenue growth is not just strong but accelerating. While the TTM revenue growth is 18%, the most recent quarter saw sales growth of 25.6%, a clear step up from the prior three quarters which ranged between 14.7% and 16.3%.
- Margin Expansion: Profit margins are expanding rapidly. The current quarter profit margin of 4.1% is a significant improvement from just 0.9% four quarters ago, demonstrating strong operating leverage as the business scales.
- Surprises & Revisions: The market is taking notice. BTSG has beaten earnings estimates in 3 of the last 4 quarters by an average of 20.9% and has beaten revenue estimates in all 4 of the last 4 quarters. Analysts have also responded, revising next year's EPS estimates higher by 9.3% over the last three months.
For a high growth momentum investor, these figures tick the essential boxes: strong year-over-year and sequential earnings power, accelerating sales, expanding margins, and persistent upside surprises that drive analyst revisions upward.
Technical Strength and a Concrete Setup
Strong fundamentals alone are not enough; the technical picture must confirm the trend and provide a viable entry. According to the detailed technical analysis report, BTSG earns a perfect Technical Rating of 10 out of 10, placing it in the top tier of technically healthy stocks. This is supported by a positive long and short-term trend, a Relative Strength rating that outperforms 98% of all stocks, and it is currently trading near its 52-week high. All major moving averages (20, 50, 100, and 200-day) are rising, confirming a strong, broad-based uptrend.
What makes this particularly actionable is the Setup Rating of 7 out of 10. As the technical report notes, this indicates the stock has been consolidating lately, creating a zone of price stability after its strong run. The setup analysis identifies a clear entry area with a buy stop order around $73.41, just above the 10-day high, and a logical stop-loss level around $69.71, just below a key support zone defined by the 20-day SMA and trend lines. This tight consolidation near the high of the range is the classic pattern of a stock coiling for a potential breakout.
Screening for the Next Opportunity
The combination of strong fundamentals, a perfect technical trend, and a defined consolidation pattern makes BTSG a textbook example of the kind of stock that emerges from this specific screen. The strategy is designed to identify situations where growth momentum is high, the trend is confirmed, and a low-risk entry point is forming.
For investors looking to replicate this process and find other stocks exhibiting this strong combination of high growth momentum and technical breakout setups, you can run the same screen yourself or explore the current list of candidates. To view the latest results and start your own analysis, click here to access the full screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading in financial markets involves risk. You should perform your own analysis and consider your own risk tolerance before making any investment decisions.
Read full article here »
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BrightSpring Health Services (NASDAQ:BTSG): High Growth Momentum Stock Flashing a Breakout Setup
High growth momentum investing isn't just about finding companies with explosive earnings—it's about identifying those that also have the market's technical backing and are setting up in a way that offers a manageable entry point. By screening for stocks with a strong ChartMill High Growth Momentum Rating (HGM) alongside elevated Technical and Setup Ratings, we aim to isolate names where strong fundamental momentum coincides with a healthy trend and a period of price consolidation that could precede the next leg higher. BrightSpring Health Services, Inc. (NASDAQ:BTSG) is a recent IPO that stands out across all three of these key dimensions, making it a candidate worth examining in detail.
High Growth Momentum Fundamentals in Focus
The High Growth Momentum Rating scores stocks on the earnings and sales metrics that matter most to growth investors. BTSG currently holds a solid HGM rating of 6 out of 10, and the underlying data reveals exactly why this score is warranted. The company is demonstrating a strong combination of triple-digit earnings growth, expanding profit margins, and consistent revenue acceleration.
Looking at the core growth drivers:
For a high growth momentum investor, these figures tick the essential boxes: strong year-over-year and sequential earnings power, accelerating sales, expanding margins, and persistent upside surprises that drive analyst revisions upward.
Technical Strength and a Concrete Setup
Strong fundamentals alone are not enough; the technical picture must confirm the trend and provide a viable entry. According to the detailed technical analysis report, BTSG earns a perfect Technical Rating of 10 out of 10, placing it in the top tier of technically healthy stocks. This is supported by a positive long and short-term trend, a Relative Strength rating that outperforms 98% of all stocks, and it is currently trading near its 52-week high. All major moving averages (20, 50, 100, and 200-day) are rising, confirming a strong, broad-based uptrend.
What makes this particularly actionable is the Setup Rating of 7 out of 10. As the technical report notes, this indicates the stock has been consolidating lately, creating a zone of price stability after its strong run. The setup analysis identifies a clear entry area with a buy stop order around $73.41, just above the 10-day high, and a logical stop-loss level around $69.71, just below a key support zone defined by the 20-day SMA and trend lines. This tight consolidation near the high of the range is the classic pattern of a stock coiling for a potential breakout.
Screening for the Next Opportunity
The combination of strong fundamentals, a perfect technical trend, and a defined consolidation pattern makes BTSG a textbook example of the kind of stock that emerges from this specific screen. The strategy is designed to identify situations where growth momentum is high, the trend is confirmed, and a low-risk entry point is forming.
For investors looking to replicate this process and find other stocks exhibiting this strong combination of high growth momentum and technical breakout setups, you can run the same screen yourself or explore the current list of candidates. To view the latest results and start your own analysis, click here to access the full screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading in financial markets involves risk. You should perform your own analysis and consider your own risk tolerance before making any investment decisions.
Read full article here »