The idea behind a strong-growth screen with a good technical setup is to find companies where the underlying business is expanding at an above-average rate, and the chart is starting to confirm that story. Simply buying companies with high earnings growth ignores price entirely, and buying a breakout pattern on a weak business is just speculation. By layering fundamental filters for growth, profitability, and financial health over a technical setup score, you aim to find stocks with both a tailwind from the business and a favorable risk/reward profile on the chart.
One name that currently passes these combined criteria is Victory Capital Holdings, Inc. (NASDAQ:VCTR). This asset manager provides specialized investment strategies across 11 autonomous franchises, managing a diversified set of over 120 strategies for institutions and individual investors. It earns a top-tier overall technical rating of 10 out of 10, while its fundamental rating stands at a solid 7 out of 10, supported by an 8 out of 10 for both growth and profitability. The fundamental setup already provides a good foundation, but the technical picture adds the timing element that growth investors often need.
Business Profile and Growth Fundamentals
Victory Capital is not a speculative tech name; it's an established asset manager that is experiencing an acceleration in its financial metrics. The fundamental report shows an impressive 64.34% revenue growth over the past year, with earnings per share rising by 30.10% in the same period. The numbers also show that this growth is on solid ground. Looking at the fundamental analysis report, the company's profitability is excellent, with an operating margin of 43.59% and a return on invested capital of 12.63% that is actually improving compared to its three-year average. Furthermore, its financial health is sound, indicated by an Altman-Z score of 3.30 and a manageable debt-to-equity ratio of 0.41, which helps ensure the growth isn't being financed solely by leverage. This combination of strong growth, high profitability, and decent health is exactly what the screen is designed to identify.
Technical Setup and Chart Pattern
The technical setup is the most convincing part of the case for VCTR. The technical analysis report gives the stock a perfect 10 out of 10, with a setup rating of 7 out of 10. Both the short-term and long-term trends are positive, and the stock is currently forming a classic bull flag pattern. After a strong advance, the price is pulling back slightly on lower volume, consolidating those gains before a potential breakout. The report notes that there is very little resistance above the current price. This pattern is a favorable entry point for a trend-following strategy, as it offers the opportunity to buy a stock that is resting after a strong move, rather than chasing it at a peak. The fact that a Pocket Pivot signal was recently observed adds another layer of accumulation evidence.
Why This Combination Matters
The strength of this approach comes from the synergy between the two factors. The fundamentals confirm that the recent price strength is backed by a growing, profitable business, so you’re not just buying a stock that went up on a news headline. The technicals, on the other hand, offer a defined risk level. The report suggests a potential entry near the 10-day moving average with a stop loss just below the recent low, limiting the initial risk on the trade to roughly 6%. This framework allows an investor to build a position in a quality business at a point where the odds of a further advance are considered high, while keeping the downside clearly defined. The screen’s combined focus on both strong growth and a technical breakout pattern aims to reduce the likelihood of buying into a stock that has already had its best run.
Screening for More Candidates
This is not an isolated case. The same methodology can be applied across the market to find other stocks displaying both strong underlying growth and a healthy technical picture. You can run this exact Strong Growth with Good Technical Setup screen yourself to find more potential candidates at any time.
Check out the full list of stocks passing this screen here.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading in stocks involves risk. You should conduct your own analysis and consider consulting with a financial advisor before making any investment decisions.
Read full article here »
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Victory Capital (NASDAQ:VCTR): A High-Growth Stock with a Strong Technical Breakout Setup
The idea behind a strong-growth screen with a good technical setup is to find companies where the underlying business is expanding at an above-average rate, and the chart is starting to confirm that story. Simply buying companies with high earnings growth ignores price entirely, and buying a breakout pattern on a weak business is just speculation. By layering fundamental filters for growth, profitability, and financial health over a technical setup score, you aim to find stocks with both a tailwind from the business and a favorable risk/reward profile on the chart.
One name that currently passes these combined criteria is Victory Capital Holdings, Inc. (NASDAQ:VCTR). This asset manager provides specialized investment strategies across 11 autonomous franchises, managing a diversified set of over 120 strategies for institutions and individual investors. It earns a top-tier overall technical rating of 10 out of 10, while its fundamental rating stands at a solid 7 out of 10, supported by an 8 out of 10 for both growth and profitability. The fundamental setup already provides a good foundation, but the technical picture adds the timing element that growth investors often need.
Business Profile and Growth Fundamentals
Victory Capital is not a speculative tech name; it's an established asset manager that is experiencing an acceleration in its financial metrics. The fundamental report shows an impressive 64.34% revenue growth over the past year, with earnings per share rising by 30.10% in the same period. The numbers also show that this growth is on solid ground. Looking at the fundamental analysis report, the company's profitability is excellent, with an operating margin of 43.59% and a return on invested capital of 12.63% that is actually improving compared to its three-year average. Furthermore, its financial health is sound, indicated by an Altman-Z score of 3.30 and a manageable debt-to-equity ratio of 0.41, which helps ensure the growth isn't being financed solely by leverage. This combination of strong growth, high profitability, and decent health is exactly what the screen is designed to identify.
Technical Setup and Chart Pattern
The technical setup is the most convincing part of the case for VCTR. The technical analysis report gives the stock a perfect 10 out of 10, with a setup rating of 7 out of 10. Both the short-term and long-term trends are positive, and the stock is currently forming a classic bull flag pattern. After a strong advance, the price is pulling back slightly on lower volume, consolidating those gains before a potential breakout. The report notes that there is very little resistance above the current price. This pattern is a favorable entry point for a trend-following strategy, as it offers the opportunity to buy a stock that is resting after a strong move, rather than chasing it at a peak. The fact that a Pocket Pivot signal was recently observed adds another layer of accumulation evidence.
Why This Combination Matters
The strength of this approach comes from the synergy between the two factors. The fundamentals confirm that the recent price strength is backed by a growing, profitable business, so you’re not just buying a stock that went up on a news headline. The technicals, on the other hand, offer a defined risk level. The report suggests a potential entry near the 10-day moving average with a stop loss just below the recent low, limiting the initial risk on the trade to roughly 6%. This framework allows an investor to build a position in a quality business at a point where the odds of a further advance are considered high, while keeping the downside clearly defined. The screen’s combined focus on both strong growth and a technical breakout pattern aims to reduce the likelihood of buying into a stock that has already had its best run.
Screening for More Candidates
This is not an isolated case. The same methodology can be applied across the market to find other stocks displaying both strong underlying growth and a healthy technical picture. You can run this exact Strong Growth with Good Technical Setup screen yourself to find more potential candidates at any time.
Check out the full list of stocks passing this screen here.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading in stocks involves risk. You should conduct your own analysis and consider consulting with a financial advisor before making any investment decisions.
Read full article here »