The screen behind this analysis targets a specific combination: stocks that show high growth momentum while also offering a technical setup with a defined entry and stop level. By requiring a High Growth Momentum rating above 4, a technical rating above 7, and a setup rating above 7, it filters for names with accelerating earnings and sales that are also consolidating rather than extended. SUNCOR ENERGY INC (NYSE:SU) currently passes all three tests, with a High Growth Momentum rating of 6, a technical rating of 9, and a setup rating of 8.
Why growth momentum matters
The High Growth Momentum rating combines several factors: yearly EPS and sales growth, quarter-over-quarter acceleration, free cash flow growth, positive earnings, expanding profit margins, earnings surprises, and analyst revisions. A score above 4 is the threshold used for this screen, and a score of 6 or higher typically indicates a stock with a convincing momentum profile even if it does not score perfectly on every component. This matters because growth stocks tend to make their biggest advances when earnings and sales are accelerating at the same time that estimates are moving higher.
Suncor's momentum in numbers
Suncor's recent quarterly data contains the acceleration pattern that the rating is designed to catch. The most recent quarter delivered a large year-over-year earnings gain, and the next quarter is expected to show continued strength. The supporting evidence:
- EPS growth, trailing 12 months: 62.9%
- EPS growth, latest quarter vs year ago: 354.9%
- EPS growth, next quarter estimate vs year ago: 77.8%
- EPS estimate beats: 4 of the last 4 quarters, average beat 11.5%
- Next-year EPS estimate revision over 3 months: +95.9%
- Revenue growth, trailing 12 months: 13.7%
- Sales growth, latest quarter vs year ago: 45.9%
- Revenue estimate beats: 3 of the last 4 quarters
- Free cash flow growth: 19.7%
- Latest quarterly profit margin: 21.3%, up from 14.5% in the prior quarter
The string of beats and the sharp upward estimate revisions are particularly relevant for high growth momentum investors, since they suggest that the strength is not just historical but is also being reflected in future expectations. The expanding margin adds another positive input, and the free cash flow growth indicates that the earnings are backed by cash generation rather than accounting adjustments.
There are some caveats. Growth was negative in quarters further back, and the energy sector remains sensitive to commodity prices, so the momentum could pause if oil prices weaken. Those factors help explain why the stock scores 6 rather than higher, and they are worth weighing before acting.
Technical rating and setup quality
The technical side reinforces the case. Suncor holds a technical rating of 9 out of 10, supported by a positive long term trend, rising moving averages across multiple time frames, and relative strength that places it ahead of 85% of the market over the past year. The stock also outperforms 77% of the names in the Oil, Gas & Consumable Fuels industry. Over the last 12 months, Suncor has gained 64.3%.
The setup rating of 8 reflects the recent consolidation. Prices have been trading in a range between roughly 59.95 and 67.48, volatility has contracted, and there is a support zone from 60.09 to 60.85 below the current price. The nearest resistance sits at 65.54. That structure allows for a buy stop entry above resistance and a stop loss below support, with a worst case loss of about 8.3% based on current levels. It is worth noting that the short term trend is still neutral and the stock is trading below its 52 week high, so the breakout needs to be confirmed rather than assumed.
For a more detailed look at the chart levels and the reasoning behind the technical score, investors can check the technical analysis report.
Other screens reinforce the same thesis
Suncor also appears on Chartmill screens built around the same growth-and-trend profile. The Minervini list is a direct fit: it targets high EPS and revenue growth plus trend/momentum, and SU combines strong fundamental growth characteristics with technical strength. The high EPS growth screen adds a second confirmation, flagging SU as profitable, financially healthy, and showing strong recent earnings growth.
Applying the same screen to the market
Suncor is one example of a stock that fits this methodology, but it is not the only one. The combination of high growth momentum, a solid technical rating, and a decent setup can be applied across the market to surface candidates before they break out. Investors who want to see more names with the same characteristics can browse the latest stocks that qualify for 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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Suncor Energy (NYSE:SU) Combines High Growth Momentum with a Breakout Setup
The screen behind this analysis targets a specific combination: stocks that show high growth momentum while also offering a technical setup with a defined entry and stop level. By requiring a High Growth Momentum rating above 4, a technical rating above 7, and a setup rating above 7, it filters for names with accelerating earnings and sales that are also consolidating rather than extended. SUNCOR ENERGY INC (NYSE:SU) currently passes all three tests, with a High Growth Momentum rating of 6, a technical rating of 9, and a setup rating of 8.
Why growth momentum matters
The High Growth Momentum rating combines several factors: yearly EPS and sales growth, quarter-over-quarter acceleration, free cash flow growth, positive earnings, expanding profit margins, earnings surprises, and analyst revisions. A score above 4 is the threshold used for this screen, and a score of 6 or higher typically indicates a stock with a convincing momentum profile even if it does not score perfectly on every component. This matters because growth stocks tend to make their biggest advances when earnings and sales are accelerating at the same time that estimates are moving higher.
Suncor's momentum in numbers
Suncor's recent quarterly data contains the acceleration pattern that the rating is designed to catch. The most recent quarter delivered a large year-over-year earnings gain, and the next quarter is expected to show continued strength. The supporting evidence:
The string of beats and the sharp upward estimate revisions are particularly relevant for high growth momentum investors, since they suggest that the strength is not just historical but is also being reflected in future expectations. The expanding margin adds another positive input, and the free cash flow growth indicates that the earnings are backed by cash generation rather than accounting adjustments.
There are some caveats. Growth was negative in quarters further back, and the energy sector remains sensitive to commodity prices, so the momentum could pause if oil prices weaken. Those factors help explain why the stock scores 6 rather than higher, and they are worth weighing before acting.
Technical rating and setup quality
The technical side reinforces the case. Suncor holds a technical rating of 9 out of 10, supported by a positive long term trend, rising moving averages across multiple time frames, and relative strength that places it ahead of 85% of the market over the past year. The stock also outperforms 77% of the names in the Oil, Gas & Consumable Fuels industry. Over the last 12 months, Suncor has gained 64.3%.
The setup rating of 8 reflects the recent consolidation. Prices have been trading in a range between roughly 59.95 and 67.48, volatility has contracted, and there is a support zone from 60.09 to 60.85 below the current price. The nearest resistance sits at 65.54. That structure allows for a buy stop entry above resistance and a stop loss below support, with a worst case loss of about 8.3% based on current levels. It is worth noting that the short term trend is still neutral and the stock is trading below its 52 week high, so the breakout needs to be confirmed rather than assumed.
For a more detailed look at the chart levels and the reasoning behind the technical score, investors can check the technical analysis report.
Other screens reinforce the same thesis
Suncor also appears on Chartmill screens built around the same growth-and-trend profile. The Minervini list is a direct fit: it targets high EPS and revenue growth plus trend/momentum, and SU combines strong fundamental growth characteristics with technical strength. The high EPS growth screen adds a second confirmation, flagging SU as profitable, financially healthy, and showing strong recent earnings growth.
Applying the same screen to the market
Suncor is one example of a stock that fits this methodology, but it is not the only one. The combination of high growth momentum, a solid technical rating, and a decent setup can be applied across the market to surface candidates before they break out. Investors who want to see more names with the same characteristics can browse the latest stocks that qualify for 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 »