High growth momentum investors do not just look for fast earnings growth; they also need a chart that allows for a well-timed entry. TERRENO REALTY CORP (NYSE:TRNO) currently satisfies both sides of that equation, passing a screen that combines a ChartMill High Growth Momentum rating of 6, a technical rating of 10, and a setup rating of 7.
Why Terreno Realty Fits the Growth Momentum Screen
The ChartMill High Growth Momentum rating is designed to capture the short-term earnings and sales acceleration that often precedes sustained price gains. Terreno Realty scores a 6 out of 10, which is a solid reading for a real estate investment trust, and the underlying fundamentals show why the rating is elevated.
- EPS growth (TTM): 105.0%
- EPS growth, last quarter vs. year ago: 40.4%
- EPS estimate beats, last 4 quarters: 4 of 4, with an average beat of 142.8%
- EPS next-year estimate revision, last 3 months: +36.0%
- Revenue growth (TTM): 20.2%
- Sales growth, last quarter vs. year ago: 12.7%
- Free cash flow per share (TTM): $1.53, with 1-year FCF growth of 2,784.9%
Profit margins remain high as well, with the last reported quarterly margin at 55.5%. The one notable caveat is that EPS is expected to decline by roughly 49.8% in the next quarter relative to the same quarter last year, which likely reflects a tough comparison. That said, analysts have been lifting next-year earnings estimates recently, and the company has beaten EPS estimates in each of the past four quarters.
Technical Strength and Setup Quality
Growth metrics alone are rarely enough for a timely purchase. A stock can be fundamentally strong but extended after a big run, leaving little room for a reasonable entry and stop. Terreno Realty avoids that problem with a perfect technical rating of 10 and a setup rating of 7.
The technical report shows positive long-term and short-term trends, with the stock currently trading in the upper part of its 52-week range. It also records a relative strength reading of 82.8, meaning it outperforms roughly 82% of the market on a yearly basis. The chart is currently displaying a bull flag pattern, which can offer a controlled entry point after a strong advance. Investors who want to dig deeper into the chart structure can view the full breakdown on this technical analysis page.
Why the Combination Matters
The rationale for combining growth momentum with setup quality is straightforward. A high growth rating identifies companies that are accelerating, but if the stock is too far extended, buying it often means stepping in front of a pullback. A strong setup rating, by contrast, helps define a clear area of support and a reasonable stop.
For Terreno Realty, the generated trade setup suggests an entry near $73.20 with a stop below $70.82, representing a worst-case loss of about 3.25%. The stock is consolidating quietly, which reduces the risk of a sharp reversal immediately after entry. This is the type of structure that growth momentum investors look for: a fundamentally strong name pausing within an uptrend and showing little resistance overhead.
Risks and Considerations
The trade setup is generated automatically, and the distance between the entry and stop is small relative to the stock's average daily movement. Investors may want to consider a wider stop if they prefer a longer-term position. Additionally, the expected EPS decline in the next quarter is a reminder that momentum metrics can shift quickly, so monitoring earnings and estimate revisions remains important.
Finding More Candidates
The same methodology that surfaced Terreno Realty can be applied to the broader market. Investors who want a current list of stocks with both high growth momentum and constructive technical setups can run the High Growth Momentum Breakout Setups screen to see additional candidates that match this approach.
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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Terreno Realty (NYSE:TRNO) Combines High Growth Momentum with a Breakout Setup
High growth momentum investors do not just look for fast earnings growth; they also need a chart that allows for a well-timed entry. TERRENO REALTY CORP (NYSE:TRNO) currently satisfies both sides of that equation, passing a screen that combines a ChartMill High Growth Momentum rating of 6, a technical rating of 10, and a setup rating of 7.
Why Terreno Realty Fits the Growth Momentum Screen
The ChartMill High Growth Momentum rating is designed to capture the short-term earnings and sales acceleration that often precedes sustained price gains. Terreno Realty scores a 6 out of 10, which is a solid reading for a real estate investment trust, and the underlying fundamentals show why the rating is elevated.
Profit margins remain high as well, with the last reported quarterly margin at 55.5%. The one notable caveat is that EPS is expected to decline by roughly 49.8% in the next quarter relative to the same quarter last year, which likely reflects a tough comparison. That said, analysts have been lifting next-year earnings estimates recently, and the company has beaten EPS estimates in each of the past four quarters.
Technical Strength and Setup Quality
Growth metrics alone are rarely enough for a timely purchase. A stock can be fundamentally strong but extended after a big run, leaving little room for a reasonable entry and stop. Terreno Realty avoids that problem with a perfect technical rating of 10 and a setup rating of 7.
The technical report shows positive long-term and short-term trends, with the stock currently trading in the upper part of its 52-week range. It also records a relative strength reading of 82.8, meaning it outperforms roughly 82% of the market on a yearly basis. The chart is currently displaying a bull flag pattern, which can offer a controlled entry point after a strong advance. Investors who want to dig deeper into the chart structure can view the full breakdown on this technical analysis page.
Why the Combination Matters
The rationale for combining growth momentum with setup quality is straightforward. A high growth rating identifies companies that are accelerating, but if the stock is too far extended, buying it often means stepping in front of a pullback. A strong setup rating, by contrast, helps define a clear area of support and a reasonable stop.
For Terreno Realty, the generated trade setup suggests an entry near $73.20 with a stop below $70.82, representing a worst-case loss of about 3.25%. The stock is consolidating quietly, which reduces the risk of a sharp reversal immediately after entry. This is the type of structure that growth momentum investors look for: a fundamentally strong name pausing within an uptrend and showing little resistance overhead.
Risks and Considerations
The trade setup is generated automatically, and the distance between the entry and stop is small relative to the stock's average daily movement. Investors may want to consider a wider stop if they prefer a longer-term position. Additionally, the expected EPS decline in the next quarter is a reminder that momentum metrics can shift quickly, so monitoring earnings and estimate revisions remains important.
Finding More Candidates
The same methodology that surfaced Terreno Realty can be applied to the broader market. Investors who want a current list of stocks with both high growth momentum and constructive technical setups can run the High Growth Momentum Breakout Setups screen to see additional candidates that match this approach.
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 »