A growth screen that layers technical timing on top of fundamental strength is a practical way to avoid buying strong companies before their charts confirm the turn. The idea is straightforward: filter for businesses with proven earnings and revenue acceleration, decent profitability, and solid financial health, then wait for a technical breakout pattern that suggests the market is beginning to reward that strength. One stock that currently fits this profile is MASTERCARD INC - A (NYSE:MA).
Why Mastercard clears the strong-growth bar
The fundamental picture for Mastercard is well above average, and the strategy’s core criteria are all met. The company earns a ChartMill growth rating of 7 out of 10, driven by double-digit expansion on both the top and bottom lines. More importantly, the growth is not just a one-quarter spike; it has been consistent over time.
- EPS growth last year: 20.46%
- EPS growth, average yearly over the past several years: 21.49%
- Revenue growth last year: 16.01%
- Revenue growth, average yearly over the past several years: 16.47%
- Expected annual EPS growth going forward: 16.33%
- Expected annual revenue growth going forward: 12.41%
Profitability also scores well at 8 out of 10. Return on invested capital is 53.48%, which places Mastercard ahead of 100% of its industry peers, while the operating margin of 60.41% and profit margin of 46.34% are both among the best in the Financial Services sector. Those margins matter because they show the company can convert payment volume growth into earnings without needing to constantly reinvest at a low rate of return.
Financial health is another strength. Mastercard has an Altman-Z score of 9.78, a debt-to-FCF ratio of 1.54, and it has reduced its share count compared with both one year and five years ago. The high debt-to-equity ratio of 3.95 is a mild concern on paper, but the company’s limited outstanding debt and strong cash generation keep that from being a red flag. Investors who want to review the complete fundamental breakdown can check the detailed fundamental analysis report.
The technical setup points to a potential breakout
A good fundamental score is only half of this screen; the technical side needs to show that the market is starting to participate. Mastercard’s technical rating is 8 out of 10, with a setup rating of 7 out of 10, which signals both trend quality and a developing entry pattern.
The stock is currently in a bullish configuration:
- Short-term trend: positive
- Long-term trend: positive
- Current price is in the upper part of its 52-week range
- A bull flag pattern is visible after a strong upward move
- Average daily volume is roughly 3.5 million shares, providing solid liquidity
The setup report highlights a buy stop entry near 579.61, just above a resistance zone, with a stop loss below the nearest support zone around 558.11. That is a moderately tight trade with a worst-case loss of about 3.7%, and it reflects the kind of precision that a well-defined technical setup can provide. The broader chart also shows three established support areas below the current price, which gives the stock clear downside reference points. For a closer look at the chart levels and pattern analysis, investors can read the technical analysis report.
Why combining these criteria matters
Mastercard is a useful example of why a strong-growth screen with technical confirmation can be more effective than either approach in isolation. A company can post excellent earnings growth for years, but without a chart that reflects institutional demand, an investor may sit through long periods of drawdown waiting for the market to catch up. Conversely, a stock with a beautiful breakout pattern but weak fundamentals often fades quickly when the story behind the rally is not supported by the numbers.
Mastercard checks both sides of that equation. Its revenue and EPS growth are still accelerating, its profitability and health ratings are strong, and the technical setup suggests the stock is forming a base after a recent rise. That is a particularly interesting combination for investors who follow the four pillars of growth investing; the business provides the growth and quality foundation, while the chart provides the timing signal.
Risks to consider
The main caveat is valuation. Mastercard’s fundamental valuation rating is just 3 out of 10, with a trailing price-to-earnings ratio of 30.19 and a forward P/E of 24.14. That is not necessarily disqualifying in a growth strategy, especially because earnings are expected to grow around 17% annually, but it does mean the stock cannot afford a major growth miss. The dividend yield is also low at roughly 0.60%, so income investors will not find much support here. Finally, while the short-term and long-term trends are positive, the stock has lagged the S&P 500 over the past year, so a failed breakout would leave limited room for error before testing the support zones below.
Other screens confirm the same Mastercard setup
Two independent screens also support the case. The High ROIC Stocks screen highlights MA as a company generating strong returns on invested capital, reinforcing the fundamental-quality part of the thesis. The Bull Flag Stocks screen shows MA in a constructive continuation pattern after a prior advance, matching the technical setup. Together, these screens add confirmation that the stock combines quality with a potential technical entry.
Finding more stocks with the same profile
Mastercard is not the only name that passes this combination of strong growth, solid fundamentals, and a promising technical setup. Investors who want to systematically scan for stocks with similar characteristics can use the same screening methodology to uncover new breakout candidates before they become obvious. The Strong Growth with technical setup screen applies these filters continuously, making it easier to focus on companies that are both fundamentally expanding and technically positioned to move.
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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Mastercard (NYSE:MA) Combines Strong Growth with a Bull Flag Technical Setup
A growth screen that layers technical timing on top of fundamental strength is a practical way to avoid buying strong companies before their charts confirm the turn. The idea is straightforward: filter for businesses with proven earnings and revenue acceleration, decent profitability, and solid financial health, then wait for a technical breakout pattern that suggests the market is beginning to reward that strength. One stock that currently fits this profile is MASTERCARD INC - A (NYSE:MA).
Why Mastercard clears the strong-growth bar
The fundamental picture for Mastercard is well above average, and the strategy’s core criteria are all met. The company earns a ChartMill growth rating of 7 out of 10, driven by double-digit expansion on both the top and bottom lines. More importantly, the growth is not just a one-quarter spike; it has been consistent over time.
Profitability also scores well at 8 out of 10. Return on invested capital is 53.48%, which places Mastercard ahead of 100% of its industry peers, while the operating margin of 60.41% and profit margin of 46.34% are both among the best in the Financial Services sector. Those margins matter because they show the company can convert payment volume growth into earnings without needing to constantly reinvest at a low rate of return.
Financial health is another strength. Mastercard has an Altman-Z score of 9.78, a debt-to-FCF ratio of 1.54, and it has reduced its share count compared with both one year and five years ago. The high debt-to-equity ratio of 3.95 is a mild concern on paper, but the company’s limited outstanding debt and strong cash generation keep that from being a red flag. Investors who want to review the complete fundamental breakdown can check the detailed fundamental analysis report.
The technical setup points to a potential breakout
A good fundamental score is only half of this screen; the technical side needs to show that the market is starting to participate. Mastercard’s technical rating is 8 out of 10, with a setup rating of 7 out of 10, which signals both trend quality and a developing entry pattern.
The stock is currently in a bullish configuration:
The setup report highlights a buy stop entry near 579.61, just above a resistance zone, with a stop loss below the nearest support zone around 558.11. That is a moderately tight trade with a worst-case loss of about 3.7%, and it reflects the kind of precision that a well-defined technical setup can provide. The broader chart also shows three established support areas below the current price, which gives the stock clear downside reference points. For a closer look at the chart levels and pattern analysis, investors can read the technical analysis report.
Why combining these criteria matters
Mastercard is a useful example of why a strong-growth screen with technical confirmation can be more effective than either approach in isolation. A company can post excellent earnings growth for years, but without a chart that reflects institutional demand, an investor may sit through long periods of drawdown waiting for the market to catch up. Conversely, a stock with a beautiful breakout pattern but weak fundamentals often fades quickly when the story behind the rally is not supported by the numbers.
Mastercard checks both sides of that equation. Its revenue and EPS growth are still accelerating, its profitability and health ratings are strong, and the technical setup suggests the stock is forming a base after a recent rise. That is a particularly interesting combination for investors who follow the four pillars of growth investing; the business provides the growth and quality foundation, while the chart provides the timing signal.
Risks to consider
The main caveat is valuation. Mastercard’s fundamental valuation rating is just 3 out of 10, with a trailing price-to-earnings ratio of 30.19 and a forward P/E of 24.14. That is not necessarily disqualifying in a growth strategy, especially because earnings are expected to grow around 17% annually, but it does mean the stock cannot afford a major growth miss. The dividend yield is also low at roughly 0.60%, so income investors will not find much support here. Finally, while the short-term and long-term trends are positive, the stock has lagged the S&P 500 over the past year, so a failed breakout would leave limited room for error before testing the support zones below.
Other screens confirm the same Mastercard setup
Two independent screens also support the case. The High ROIC Stocks screen highlights MA as a company generating strong returns on invested capital, reinforcing the fundamental-quality part of the thesis. The Bull Flag Stocks screen shows MA in a constructive continuation pattern after a prior advance, matching the technical setup. Together, these screens add confirmation that the stock combines quality with a potential technical entry.
Finding more stocks with the same profile
Mastercard is not the only name that passes this combination of strong growth, solid fundamentals, and a promising technical setup. Investors who want to systematically scan for stocks with similar characteristics can use the same screening methodology to uncover new breakout candidates before they become obvious. The Strong Growth with technical setup screen applies these filters continuously, making it easier to focus on companies that are both fundamentally expanding and technically positioned to move.
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 »