INTERNATIONAL SEAWAYS INC (NYSE:INSW) fits the profile of a stock that combines strong earnings momentum with a compelling technical setup, making it a candidate for high growth momentum investors who also want a defined entry point. The approach screens for securities with a High Growth Momentum (HGM) rating above 4, a Technical rating above 7, and a Setup rating above 7, aiming to identify companies where accelerating fundamentals and favorable chart patterns converge. With an HGM rating of 7, a Technical rating of 10, and a Setup rating of 8, the stock clears all three thresholds, warranting a closer look.
High Growth Momentum Characteristics
The HGM rating evaluates a range of earnings and sales metrics, and International Seaways scores well on several key components. Recent quarterly performance shows a sharp acceleration that aligns with the typical profile of a high momentum name:
- EPS growth Q2Q (latest quarter vs. same quarter last year): 387.5%, with the prior quarter also posting 172.2% growth.
- Sales growth Q2Q (latest quarter): 77.5%, following an already strong 37.6% increase in the prior quarter.
- Profit margins are expanding: The most recent quarter reported a profit margin of 87.9%, up from 47.6% in the prior quarter and 35.9% two quarters ago.
- Earnings surprise consistency: The company beat EPS estimates in all of the last four quarters, with an average beat of 25.1%.
- Analyst revisions: The average next???year EPS estimate has been revised upward by 121.3% over the past three months, and revenue estimates have risen 36.1% in the same period.
These factors—accelerating Q2Q growth, rising margins, consistent beats, and positive estimate revisions—are precisely the hallmarks that the HGM rating captures. While the stock’s longer???term annual EPS figures show some variability (a common trait in cyclical shipping names), the recent momentum is strong and supported by sales acceleration.
Technical Strength and Setup Quality
Beyond the fundamental acceleration, the technical picture is equally robust. The stock earns a perfect Technical rating of 10, reflecting strong short??? and long???term trends, relative strength that outperforms 96% of all stocks, and a new 52???week high. The Setup rating of 8 indicates a well???defined consolidation pattern near that high.
The technical report identifies a resistance zone just above current price at $93.61, and a support zone near $87.03 formed by moving averages and trend lines. A possible breakout entry is suggested above $93.62, with a stop loss below the support area. Investors can review the full analysis and chart details on the technical analysis report.
Why This Combination Matters
For growth investors following a CANSLIM???or Minervini???style approach, a stock that exhibits both strong earnings momentum and a constructive technical setup is often the ideal candidate. The high HGM rating ensures that the fundamental story has real, recent acceleration, while the high TA and Setup ratings reduce the risk of buying into an extended move. International Seaways currently shows a tight price range near its high, with rising moving averages and positive volatility contraction—conditions that have historically preceded further gains in leaders.
Risks to Consider
The shipping industry is inherently cyclical, and the company’s profit margins and earnings can fluctuate with tanker rates and global oil demand. The recent EPS acceleration, while dramatic, follows a period of decline, and reliance on continued strong freight markets adds uncertainty. Additionally, the suggested trade setup carries a 7.3% stop distance, which is reasonable but requires disciplined risk management.
Finding Similar Opportunities
Investors who want to systematically screen for stocks that combine high growth momentum with breakout technical setups can use a custom screen that mirrors this methodology. The full list of qualifying stocks, updated daily, is available through this stock screener.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
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International Seaways (NYSE:INSW) Combines High Growth Momentum with Strong Breakout Setup
INTERNATIONAL SEAWAYS INC (NYSE:INSW) fits the profile of a stock that combines strong earnings momentum with a compelling technical setup, making it a candidate for high growth momentum investors who also want a defined entry point. The approach screens for securities with a High Growth Momentum (HGM) rating above 4, a Technical rating above 7, and a Setup rating above 7, aiming to identify companies where accelerating fundamentals and favorable chart patterns converge. With an HGM rating of 7, a Technical rating of 10, and a Setup rating of 8, the stock clears all three thresholds, warranting a closer look.
High Growth Momentum Characteristics
The HGM rating evaluates a range of earnings and sales metrics, and International Seaways scores well on several key components. Recent quarterly performance shows a sharp acceleration that aligns with the typical profile of a high momentum name:
These factors—accelerating Q2Q growth, rising margins, consistent beats, and positive estimate revisions—are precisely the hallmarks that the HGM rating captures. While the stock’s longer???term annual EPS figures show some variability (a common trait in cyclical shipping names), the recent momentum is strong and supported by sales acceleration.
Technical Strength and Setup Quality
Beyond the fundamental acceleration, the technical picture is equally robust. The stock earns a perfect Technical rating of 10, reflecting strong short??? and long???term trends, relative strength that outperforms 96% of all stocks, and a new 52???week high. The Setup rating of 8 indicates a well???defined consolidation pattern near that high.
The technical report identifies a resistance zone just above current price at $93.61, and a support zone near $87.03 formed by moving averages and trend lines. A possible breakout entry is suggested above $93.62, with a stop loss below the support area. Investors can review the full analysis and chart details on the technical analysis report.
Why This Combination Matters
For growth investors following a CANSLIM???or Minervini???style approach, a stock that exhibits both strong earnings momentum and a constructive technical setup is often the ideal candidate. The high HGM rating ensures that the fundamental story has real, recent acceleration, while the high TA and Setup ratings reduce the risk of buying into an extended move. International Seaways currently shows a tight price range near its high, with rising moving averages and positive volatility contraction—conditions that have historically preceded further gains in leaders.
Risks to Consider
The shipping industry is inherently cyclical, and the company’s profit margins and earnings can fluctuate with tanker rates and global oil demand. The recent EPS acceleration, while dramatic, follows a period of decline, and reliance on continued strong freight markets adds uncertainty. Additionally, the suggested trade setup carries a 7.3% stop distance, which is reasonable but requires disciplined risk management.
Finding Similar Opportunities
Investors who want to systematically screen for stocks that combine high growth momentum with breakout technical setups can use a custom screen that mirrors this methodology. The full list of qualifying stocks, updated daily, is available through this stock screener.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »