A screen that combines high growth momentum with technical breakout patterns is designed to find stocks that are not only growing fast but also sitting at a point where the chart supports an entry. One name that fits all three filters is SAMSARA INC-CL A (NYSE:IOT), which scores an 8 on both the technical and setup ratings while carrying a High Growth Momentum rating of 6. The stock appears to be building a constructive base after a strong run, and the underlying fundamentals show the kind of acceleration that momentum investors look for.
A growth scorecard that supports the momentum thesis
To understand why Samsara passes the growth screen, the key inputs behind the High Growth Momentum rating are worth a closer look. The rating rewards companies that combine earnings and sales growth with acceleration, expanding margins, positive earnings surprises, and upward estimate revisions. Samsara checks most of those boxes:
- EPS growth over the trailing twelve months: 82.4%
- Sales growth over the trailing twelve months: 29.6%
- EPS estimate beats: 4 out of 4 quarters, with an average beat of 39.3%
- Profit margin expansion: from 1.9% two quarters ago to 9.3% in the latest quarter
- Next-year EPS estimate revisions: up 7.6% over the last three months
- Free cash flow per share growth: sharply higher over the past year
The growth rates have cooled from the extreme levels seen a year ago, but the overall picture remains one of a company that is expanding quickly while improving profitability. The consistent beat rate and the upward estimate pressure are two factors that give the growth rating its forward-looking signal.
Technical strength and a setup worth watching
The technical side is just as important for this screen. A high growth stock can still be untouchable if it is extended too far above its moving averages. Samsara scores 8 out of 10 on the ChartMill Technical Rating, with positive long-term and short-term trends and all major moving averages rising. The stock is outperforming 77% of its industry peers and is trading in the upper part of its 52-week range.
The setup rating also comes in at 8, which points to a price structure that is consolidating rather than chasing. The ChartMill report notes a bull flag pattern, with a resistance zone just above the current price at $40.89 to $41.15. A decisive move through that level would represent the breakout. The setup suggests an entry near $41.16 with a stop below the support zone at $40.18. That gives the trade a clearly defined risk level, which is exactly what a momentum investor needs when earnings momentum and technical momentum are aligning.
For a more detailed look at the chart levels and the reasoning behind the technical score, investors can review the technical analysis report.
Why the combination matters
High growth momentum investing is not just about buying the fastest growers; it is also about buying them at the right time. A stock can have excellent fundamentals and still be a poor investment if the purchase happens after a sharp extension. The dual filter used here addresses that problem. By requiring a minimum High Growth Momentum rating of 4, the screen removes names that lack earnings momentum. By adding setup and technical rating thresholds above 7, it ensures that the stock is in an uptrend and forming a healthy consolidation. Samsara sits above all three thresholds, which makes it a candidate worth monitoring for a potential breakout.
That said, no setup is guaranteed. The technical report flags that the distance between the suggested entry and stop is small relative to the stock's average daily range, and a wider stop may be needed for a longer-term trade. Momentum can also fade if growth decelerates faster than expected, so the entry point and position size remain important parts of the process.
Other screens confirm the growth angle
Samsara also appears on other ChartMill screens that support the growth side of the story. It is included in the Fastest Growing Stocks list, which flags strong recent growth in both earnings and sales, and it also shows up on the Revenue Growth Leaders screen, where the profile notes strong recent and multi-year revenue growth. Together, these screens provide additional confirmation of the company's momentum.
For a broader view of the market, investors can see which other stocks currently pass the same combination of growth and technical filters with this high growth momentum and breakout setup 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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Samsara (NYSE:IOT) Combines High Growth Momentum with a Bull Flag Breakout Setup
A screen that combines high growth momentum with technical breakout patterns is designed to find stocks that are not only growing fast but also sitting at a point where the chart supports an entry. One name that fits all three filters is SAMSARA INC-CL A (NYSE:IOT), which scores an 8 on both the technical and setup ratings while carrying a High Growth Momentum rating of 6. The stock appears to be building a constructive base after a strong run, and the underlying fundamentals show the kind of acceleration that momentum investors look for.
A growth scorecard that supports the momentum thesis
To understand why Samsara passes the growth screen, the key inputs behind the High Growth Momentum rating are worth a closer look. The rating rewards companies that combine earnings and sales growth with acceleration, expanding margins, positive earnings surprises, and upward estimate revisions. Samsara checks most of those boxes:
The growth rates have cooled from the extreme levels seen a year ago, but the overall picture remains one of a company that is expanding quickly while improving profitability. The consistent beat rate and the upward estimate pressure are two factors that give the growth rating its forward-looking signal.
Technical strength and a setup worth watching
The technical side is just as important for this screen. A high growth stock can still be untouchable if it is extended too far above its moving averages. Samsara scores 8 out of 10 on the ChartMill Technical Rating, with positive long-term and short-term trends and all major moving averages rising. The stock is outperforming 77% of its industry peers and is trading in the upper part of its 52-week range.
The setup rating also comes in at 8, which points to a price structure that is consolidating rather than chasing. The ChartMill report notes a bull flag pattern, with a resistance zone just above the current price at $40.89 to $41.15. A decisive move through that level would represent the breakout. The setup suggests an entry near $41.16 with a stop below the support zone at $40.18. That gives the trade a clearly defined risk level, which is exactly what a momentum investor needs when earnings momentum and technical momentum are aligning.
For a more detailed look at the chart levels and the reasoning behind the technical score, investors can review the technical analysis report.
Why the combination matters
High growth momentum investing is not just about buying the fastest growers; it is also about buying them at the right time. A stock can have excellent fundamentals and still be a poor investment if the purchase happens after a sharp extension. The dual filter used here addresses that problem. By requiring a minimum High Growth Momentum rating of 4, the screen removes names that lack earnings momentum. By adding setup and technical rating thresholds above 7, it ensures that the stock is in an uptrend and forming a healthy consolidation. Samsara sits above all three thresholds, which makes it a candidate worth monitoring for a potential breakout.
That said, no setup is guaranteed. The technical report flags that the distance between the suggested entry and stop is small relative to the stock's average daily range, and a wider stop may be needed for a longer-term trade. Momentum can also fade if growth decelerates faster than expected, so the entry point and position size remain important parts of the process.
Other screens confirm the growth angle
Samsara also appears on other ChartMill screens that support the growth side of the story. It is included in the Fastest Growing Stocks list, which flags strong recent growth in both earnings and sales, and it also shows up on the Revenue Growth Leaders screen, where the profile notes strong recent and multi-year revenue growth. Together, these screens provide additional confirmation of the company's momentum.
For a broader view of the market, investors can see which other stocks currently pass the same combination of growth and technical filters with this high growth momentum and breakout setup 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 »