Strong growth investing is not only about finding companies with fast rising earnings; it also requires some evidence that the market is beginning to reward that growth. The screen behind this selection combines fundamental momentum with technical confirmation, looking for stocks whose businesses are expanding while the chart shows an emerging breakout pattern. That is the context in which HAMILTON LANE INC-CLASS A (NASDAQ:HLNE), a private markets investment firm headquartered in Conshohocken, Pennsylvania, came through the filter.
A fundamental picture built on growth and profitability
Hamilton Lane carries a fundamental rating of 7 out of 10, and the underlying components tell a fairly consistent story. The growth rating sits at 7, supported by earnings per share growth of 34.71% over the past year and a 24.01% increase in revenue. Those are not one-off numbers; over the past several years, EPS has compounded at 16.62% annually while revenue has grown at an average of 17.31% per year.
What makes the stock stand out in the Capital Markets industry is the combination of that growth with high profitability and a clean balance sheet. The profitability rating of 8 is supported by a return on equity of 29.37%, which outperforms roughly 91% of the industry, and a return on invested capital of 15.41%. The health rating of 7 reflects an Altman-Z score of 3.41, a debt to free cash flow ratio of 0.75, and a debt to equity ratio of 0.29. In short, the company is growing at a solid clip without loading up on leverage to do it.
Key fundamental metrics:
- EPS growth (last year): 34.71%
- Revenue growth (last year): 24.01%
- Return on equity: 29.37%
- Return on invested capital: 15.41%
- Debt to free cash flow: 0.75
- Altman-Z score: 3.41
The valuation is also not stretched. With a trailing P/E of 16.16 and a forward P/E of 13.98, the stock trades roughly in line with its industry and below the broader S&P 500 multiple. That matters for a growth strategy, because it means investors are not paying a premium that would require flawless execution going forward. For a full breakdown of these figures, investors can check the fundamental analysis report.
The technical setup: a bull flag in progress
The technical picture is where this stock becomes interesting for a breakout strategy. The technical rating is a moderate 6, but the setup rating is 7, which is what the screen is designed to capture. Hamilton Lane is currently showing a bull flag pattern, a pullback on declining volume after a strong upward move. That is often interpreted as a pause before the next leg higher.
The stock has already shown its ability to move. It is up 26.68% over the past month and 16.64% over the past three months, with the short term trend now positive. The moving averages are aligning as well, with the 20 day, 50 day, and 100 day averages all rising. Immediately above the current price of 105.35 sits a resistance zone ranging from 105.36 to 107.19, and a buy stop order above that zone at 107.20 would represent a classic breakout entry. A stop loss below the support zone at 103.60 keeps the risk defined at roughly 3.36%.
The setup is not without caveats. The stock remains in the middle of its 52 week range, and the longer term trend is still neutral. The 12 month performance is deeply negative at minus 32.79%, and 78% of all stocks have performed better over that period. The technical report also notes that the distance between the suggested entry and exit is small relative to the stock's average daily movement, so position sizing warrants attention. Still, the recent price action is exactly what the screen is looking for: a stock that has established an uptrend, pulled back in an orderly fashion, and is now positioned against a resistance zone. The full details are in the technical analysis report.
Why this combination matters
Screening for strong growth alone tends to produce a long list of companies with impressive income statements and weak charts. Screening for breakouts alone tends to produce stocks with strong charts and questionable businesses. The value of combining the two is that each filter removes the weaknesses of the other. A company that is growing earnings by more than 30% while also displaying a bullish technical pattern offers both a fundamental reason to own it and a technical reason to time the purchase.
That is also why the supporting metrics matter here. High profitability and low debt give the company room to keep funding its growth, while the technical setup provides a disciplined entry and exit plan. Growth investing rewards patience, but it also rewards structure; knowing where to enter and where to cut losses is part of the method, not an afterthought.
Independent screens confirm the setup
Hamilton Lane shows up on a few adjacent screens that line up with the article's core thesis. The fastest growing stocks screen includes HLNE for strong recent growth in both earnings and sales, corroborating the fundamental momentum side of the story. The bull flag stocks screen also lists the stock as forming a constructive continuation pattern after a prior advance, matching the technical breakout angle. Together, these screens reinforce the idea that HLNE is not just growing quickly on paper, but also displaying the kind of chart behavior that growth-breakout strategies look for.
Investors who want to scan for similar opportunities can find more stocks that match this methodology on the strong growth stock technical setups 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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Hamilton Lane (NASDAQ:HLNE) Combines Strong Growth with Bull Flag Breakout Setup
Strong growth investing is not only about finding companies with fast rising earnings; it also requires some evidence that the market is beginning to reward that growth. The screen behind this selection combines fundamental momentum with technical confirmation, looking for stocks whose businesses are expanding while the chart shows an emerging breakout pattern. That is the context in which HAMILTON LANE INC-CLASS A (NASDAQ:HLNE), a private markets investment firm headquartered in Conshohocken, Pennsylvania, came through the filter.
A fundamental picture built on growth and profitability
Hamilton Lane carries a fundamental rating of 7 out of 10, and the underlying components tell a fairly consistent story. The growth rating sits at 7, supported by earnings per share growth of 34.71% over the past year and a 24.01% increase in revenue. Those are not one-off numbers; over the past several years, EPS has compounded at 16.62% annually while revenue has grown at an average of 17.31% per year.
What makes the stock stand out in the Capital Markets industry is the combination of that growth with high profitability and a clean balance sheet. The profitability rating of 8 is supported by a return on equity of 29.37%, which outperforms roughly 91% of the industry, and a return on invested capital of 15.41%. The health rating of 7 reflects an Altman-Z score of 3.41, a debt to free cash flow ratio of 0.75, and a debt to equity ratio of 0.29. In short, the company is growing at a solid clip without loading up on leverage to do it.
Key fundamental metrics:
The valuation is also not stretched. With a trailing P/E of 16.16 and a forward P/E of 13.98, the stock trades roughly in line with its industry and below the broader S&P 500 multiple. That matters for a growth strategy, because it means investors are not paying a premium that would require flawless execution going forward. For a full breakdown of these figures, investors can check the fundamental analysis report.
The technical setup: a bull flag in progress
The technical picture is where this stock becomes interesting for a breakout strategy. The technical rating is a moderate 6, but the setup rating is 7, which is what the screen is designed to capture. Hamilton Lane is currently showing a bull flag pattern, a pullback on declining volume after a strong upward move. That is often interpreted as a pause before the next leg higher.
The stock has already shown its ability to move. It is up 26.68% over the past month and 16.64% over the past three months, with the short term trend now positive. The moving averages are aligning as well, with the 20 day, 50 day, and 100 day averages all rising. Immediately above the current price of 105.35 sits a resistance zone ranging from 105.36 to 107.19, and a buy stop order above that zone at 107.20 would represent a classic breakout entry. A stop loss below the support zone at 103.60 keeps the risk defined at roughly 3.36%.
The setup is not without caveats. The stock remains in the middle of its 52 week range, and the longer term trend is still neutral. The 12 month performance is deeply negative at minus 32.79%, and 78% of all stocks have performed better over that period. The technical report also notes that the distance between the suggested entry and exit is small relative to the stock's average daily movement, so position sizing warrants attention. Still, the recent price action is exactly what the screen is looking for: a stock that has established an uptrend, pulled back in an orderly fashion, and is now positioned against a resistance zone. The full details are in the technical analysis report.
Why this combination matters
Screening for strong growth alone tends to produce a long list of companies with impressive income statements and weak charts. Screening for breakouts alone tends to produce stocks with strong charts and questionable businesses. The value of combining the two is that each filter removes the weaknesses of the other. A company that is growing earnings by more than 30% while also displaying a bullish technical pattern offers both a fundamental reason to own it and a technical reason to time the purchase.
That is also why the supporting metrics matter here. High profitability and low debt give the company room to keep funding its growth, while the technical setup provides a disciplined entry and exit plan. Growth investing rewards patience, but it also rewards structure; knowing where to enter and where to cut losses is part of the method, not an afterthought.
Independent screens confirm the setup
Hamilton Lane shows up on a few adjacent screens that line up with the article's core thesis. The fastest growing stocks screen includes HLNE for strong recent growth in both earnings and sales, corroborating the fundamental momentum side of the story. The bull flag stocks screen also lists the stock as forming a constructive continuation pattern after a prior advance, matching the technical breakout angle. Together, these screens reinforce the idea that HLNE is not just growing quickly on paper, but also displaying the kind of chart behavior that growth-breakout strategies look for.
Investors who want to scan for similar opportunities can find more stocks that match this methodology on the strong growth stock technical setups 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 »