The stock selection method behind this screen is designed to isolate high growth momentum names that also show technical confirmation. By combining ChartMill's High Growth Momentum Rating with minimum Technical and Setup Rating thresholds, the process looks for companies with accelerating earnings, upward estimate revisions, and a chart pattern that offers a defined entry near a consolidation breakout. CORECIVIC INC (NYSE:CXW) is a government solutions company that fits that profile, with a High Growth Momentum Rating of 6, a Technical Rating of 9, and a Setup Rating of 7.
Screening for growth plus a defined setup
The idea is to avoid the two common failure modes in growth investing: buying a fundamentally strong stock with no trend, or buying a strong chart with no earnings momentum. The High Growth Momentum Rating addresses the fundamentals side, while the Technical and Setup Ratings handle trend and entry. With the S&P 500 in a positive long and short term trend, this type of combined screen is often used to find leaders that still have room to be bought before a breakout.
Why the growth momentum score stands up
CoreCivic's High Growth Momentum Rating of 6 reflects strong short term earnings momentum, even if not every subcomponent is perfect. The rating rewards sales and EPS acceleration, margin expansion, estimate beats, and revisions, and the underlying numbers are supportive in most of those areas.
- EPS growth over the TTM period: +60.0%
- Latest quarter EPS growth vs. a year ago: +77.8%, up from +65.2% and +52.9% in the prior two quarters
- Next quarter EPS growth estimate: +71.1%
- Latest quarter sales growth vs. a year ago: +27.3%, with prior quarters at +25.8%, +26.0%, and +18.1%
- Profit margin expanded to 6.2% in the latest quarter from 4.4% in the previous quarter
- EPS estimate beats: 3 out of the last 4 quarters, with an average beat of 35.7%
- Revenue estimate beats: 4 out of the last 4 quarters
- Next year EPS estimates revised up by 6.6% over the last three months
The main blemish is free cash flow, which fell sharply on a per share basis over the trailing year. That likely explains why the High Growth Momentum Rating is a solid 6 rather than a higher score. Still, the earnings and sales trajectory is the type of momentum that high growth investors look for, especially when it is accompanied by positive surprises and upward revisions.
Technical strength and setup quality
The technical picture reinforces the growth story. CoreCivic holds a Technical Rating of 9 out of 10, with both long and short term trends positive. Its relative strength reading of 93.93 means it is outperforming nearly 94% of the market, and it trades near its 52 week high. Within the Commercial Services & Supplies industry, the stock ranks above 92% of peers.
The Setup Rating of 7 indicates a decent consolidation pattern rather than an extended move. The stock has been trading in a range with resistance just above the current price at 31.89 to 32.18, and support below around 29.30 to 29.90. A recent pocket pivot signal adds to the setup. The practical implication is that there is a defined breakout level and a reasonable stop level, which is exactly what a momentum trader needs before entering. Investors who want to review the full technical breakdown can use the technical analysis report.
Why this combination matters
High growth momentum investing works best when earnings acceleration is confirmed by institutional demand. The HGM score captures the earnings side, while the Technical and Setup Ratings capture the demand side through trend, relative strength, and price consolidation. CoreCivic combines a 6 for high growth momentum with a 9 for technical health and a 7 for setup quality, making it a candidate for a buy-stop approach above resistance. The trade suggestion in the technical report points to an entry near 32.19, just above the resistance zone, with a stop near 29.45.
Risks remain. The sharp decline in free cash flow is a concern, and the setup, while decent, is not the highest possible. Prison and detention operators also face policy and contract risks that can appear suddenly. As with any momentum screen, the chart and earnings estimates need to be rechecked before entry, since a failed breakout can happen quickly. Investors looking for additional names that combine high growth momentum with a technical setup can find more stocks through this screen.
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 »
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CoreCivic (NYSE:CXW) Combines High Growth Momentum with a Breakout Setup
The stock selection method behind this screen is designed to isolate high growth momentum names that also show technical confirmation. By combining ChartMill's High Growth Momentum Rating with minimum Technical and Setup Rating thresholds, the process looks for companies with accelerating earnings, upward estimate revisions, and a chart pattern that offers a defined entry near a consolidation breakout. CORECIVIC INC (NYSE:CXW) is a government solutions company that fits that profile, with a High Growth Momentum Rating of 6, a Technical Rating of 9, and a Setup Rating of 7.
Screening for growth plus a defined setup
The idea is to avoid the two common failure modes in growth investing: buying a fundamentally strong stock with no trend, or buying a strong chart with no earnings momentum. The High Growth Momentum Rating addresses the fundamentals side, while the Technical and Setup Ratings handle trend and entry. With the S&P 500 in a positive long and short term trend, this type of combined screen is often used to find leaders that still have room to be bought before a breakout.
Why the growth momentum score stands up
CoreCivic's High Growth Momentum Rating of 6 reflects strong short term earnings momentum, even if not every subcomponent is perfect. The rating rewards sales and EPS acceleration, margin expansion, estimate beats, and revisions, and the underlying numbers are supportive in most of those areas.
The main blemish is free cash flow, which fell sharply on a per share basis over the trailing year. That likely explains why the High Growth Momentum Rating is a solid 6 rather than a higher score. Still, the earnings and sales trajectory is the type of momentum that high growth investors look for, especially when it is accompanied by positive surprises and upward revisions.
Technical strength and setup quality
The technical picture reinforces the growth story. CoreCivic holds a Technical Rating of 9 out of 10, with both long and short term trends positive. Its relative strength reading of 93.93 means it is outperforming nearly 94% of the market, and it trades near its 52 week high. Within the Commercial Services & Supplies industry, the stock ranks above 92% of peers.
The Setup Rating of 7 indicates a decent consolidation pattern rather than an extended move. The stock has been trading in a range with resistance just above the current price at 31.89 to 32.18, and support below around 29.30 to 29.90. A recent pocket pivot signal adds to the setup. The practical implication is that there is a defined breakout level and a reasonable stop level, which is exactly what a momentum trader needs before entering. Investors who want to review the full technical breakdown can use the technical analysis report.
Why this combination matters
High growth momentum investing works best when earnings acceleration is confirmed by institutional demand. The HGM score captures the earnings side, while the Technical and Setup Ratings capture the demand side through trend, relative strength, and price consolidation. CoreCivic combines a 6 for high growth momentum with a 9 for technical health and a 7 for setup quality, making it a candidate for a buy-stop approach above resistance. The trade suggestion in the technical report points to an entry near 32.19, just above the resistance zone, with a stop near 29.45.
Risks remain. The sharp decline in free cash flow is a concern, and the setup, while decent, is not the highest possible. Prison and detention operators also face policy and contract risks that can appear suddenly. As with any momentum screen, the chart and earnings estimates need to be rechecked before entry, since a failed breakout can happen quickly. Investors looking for additional names that combine high growth momentum with a technical setup can find more stocks through this screen.
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 »