An effective way to combine growth momentum with timely entry is to screen for stocks that simultaneously score well on earnings momentum, technical strength, and chart setup quality. The approach filters for a High Growth Momentum (HGM) rating above 4, a Technical Analysis (TA) rating above 7, and a Setup Quality rating above 7. This narrows the field to companies with accelerating earnings and sales, a strong upward price trend, and a chart pattern that suggests a potential breakout is forming.
One stock that emerges from such a screen is Phillips 66 (NYSE:PSX), a diversified energy company with operations spanning refining, midstream, chemicals, marketing, and renewables. On the growth side, PSX earns a High Growth Momentum rating of 6 out of 10, comfortably above the threshold. That score is backed by strong earnings momentum: EPS over the trailing twelve months grew 138% year-over-year, and the most recent quarter saw a 154% jump compared to the same quarter last year. The company has beaten earnings estimates in each of the last four quarters, with an average beat of nearly 72%. Analysts have also revised next year's EPS estimates upward by 35% in the last three months, signaling growing confidence in the earnings trajectory. While revenue growth has been modest in recent quarters, the acceleration in EPS and the consistent surprise factor are exactly what the HGM rating captures.
Technical Strength and Setup Quality
A high growth stock is only useful if it can be bought at the right time. PSX's technical picture addresses that well. The ChartMill Technical Analysis rating is a perfect 10, reflecting a strong and consistent uptrend across multiple time frames. The stock is outperforming 92% of all stocks on a yearly performance basis and is trading in the upper portion of its 52???week range. Both short???term and long???term trends are positive, and the price sits above all key moving averages (20, 50, 100, and 200???day), all of which are rising.
The Setup Quality rating of 7 indicates that PSX is forming a constructive consolidation pattern. According to the technical report, the stock is currently showing a bull flag pattern—a brief pullback after a strong advance that often resolves with another leg higher. There is very little resistance above the current price, and a clear support zone exists near $206???207, providing a logical place for a stop???loss. The suggested entry is a buy stop above the 10???day high at $216.09, with a stop below the support zone. This type of tight consolidation in a strong uptrend aligns well with the breakout???setup approach that growth investors often seek.
Confirming Screens
PSX also appears on several other relevant screens that reinforce the same narrative. The Bull Flag Stocks list highlights stocks forming constructive continuation patterns after a prior advance, which directly matches the bull flag noted in the technical analysis. The Breakout Setups screen identifies stocks with strong technical strength and consolidation patterns, and PSX qualifies there as well. Additionally, the Minervini Stocks screen, which requires high EPS growth and strong price trends, includes PSX—confirming that the company meets the style's fundamental and momentum criteria.
Finding More Candidates
This combination of high growth momentum and a well???defined technical setup is not unique to PSX. Investors can run the same screen themselves to uncover other stocks that exhibit comparable characteristics. For a regularly updated list of stocks meeting these criteria, check out the High Growth Momentum Breakout Setups screen.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own analysis and consider your risk tolerance before making trading decisions.
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Phillips 66 (NYSE:PSX): High Growth Momentum and Breakout Setup Signal Timely Entry
An effective way to combine growth momentum with timely entry is to screen for stocks that simultaneously score well on earnings momentum, technical strength, and chart setup quality. The approach filters for a High Growth Momentum (HGM) rating above 4, a Technical Analysis (TA) rating above 7, and a Setup Quality rating above 7. This narrows the field to companies with accelerating earnings and sales, a strong upward price trend, and a chart pattern that suggests a potential breakout is forming.
One stock that emerges from such a screen is Phillips 66 (NYSE:PSX), a diversified energy company with operations spanning refining, midstream, chemicals, marketing, and renewables. On the growth side, PSX earns a High Growth Momentum rating of 6 out of 10, comfortably above the threshold. That score is backed by strong earnings momentum: EPS over the trailing twelve months grew 138% year-over-year, and the most recent quarter saw a 154% jump compared to the same quarter last year. The company has beaten earnings estimates in each of the last four quarters, with an average beat of nearly 72%. Analysts have also revised next year's EPS estimates upward by 35% in the last three months, signaling growing confidence in the earnings trajectory. While revenue growth has been modest in recent quarters, the acceleration in EPS and the consistent surprise factor are exactly what the HGM rating captures.
Technical Strength and Setup Quality
A high growth stock is only useful if it can be bought at the right time. PSX's technical picture addresses that well. The ChartMill Technical Analysis rating is a perfect 10, reflecting a strong and consistent uptrend across multiple time frames. The stock is outperforming 92% of all stocks on a yearly performance basis and is trading in the upper portion of its 52???week range. Both short???term and long???term trends are positive, and the price sits above all key moving averages (20, 50, 100, and 200???day), all of which are rising.
The Setup Quality rating of 7 indicates that PSX is forming a constructive consolidation pattern. According to the technical report, the stock is currently showing a bull flag pattern—a brief pullback after a strong advance that often resolves with another leg higher. There is very little resistance above the current price, and a clear support zone exists near $206???207, providing a logical place for a stop???loss. The suggested entry is a buy stop above the 10???day high at $216.09, with a stop below the support zone. This type of tight consolidation in a strong uptrend aligns well with the breakout???setup approach that growth investors often seek.
Confirming Screens
PSX also appears on several other relevant screens that reinforce the same narrative. The Bull Flag Stocks list highlights stocks forming constructive continuation patterns after a prior advance, which directly matches the bull flag noted in the technical analysis. The Breakout Setups screen identifies stocks with strong technical strength and consolidation patterns, and PSX qualifies there as well. Additionally, the Minervini Stocks screen, which requires high EPS growth and strong price trends, includes PSX—confirming that the company meets the style's fundamental and momentum criteria.
Finding More Candidates
This combination of high growth momentum and a well???defined technical setup is not unique to PSX. Investors can run the same screen themselves to uncover other stocks that exhibit comparable characteristics. For a regularly updated list of stocks meeting these criteria, check out the High Growth Momentum Breakout Setups screen.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own analysis and consider your risk tolerance before making trading decisions.
Read full article here »