Why the high growth investor may take a look at APPLOVIN CORP-CLASS A (NASDAQ:APP).

A possible breakout setup was detected on APPLOVIN CORP-CLASS A (NASDAQ:APP) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:APP.

Technical Analysis Observations

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 10 out of 10 to APP. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, APP is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, APP did better than 99% of all other stocks. On top of that, APP also shows a nice and consistent pattern of rising prices.
• APP is one of the better performing stocks in the Software industry, it outperforms 98% of 286 stocks in the same industry.
• APP is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so APP is lagging the market slightly.
• In the last month APP has a been trading in the 307.07 - 371.77 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

Check the latest full technical report of APP for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:APP currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

APP has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 351.06, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NASDAQ:APP highlighted

• The recent financial report of APPLOVIN CORP-CLASS A demonstrates a 317.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• APPLOVIN CORP-CLASS A has experienced 38.64% q2q revenue growth, indicating a significant sales increase.
• APPLOVIN CORP-CLASS A has demonstrated strong 1-year revenue growth of 41.48%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• APPLOVIN CORP-CLASS A has seen a 46.79% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• The quarterly earnings of APPLOVIN CORP-CLASS A have shown a 317.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The operating margin of APPLOVIN CORP-CLASS A has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With positive growth in its free cash flow (FCF) over the past year, APPLOVIN CORP-CLASS A showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• With a favorable Return on Equity (ROE) of 123.0%, APPLOVIN CORP-CLASS A demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• The ownership composition of APPLOVIN CORP-CLASS A reflects a balanced investor ecosystem, with institutional shareholders owning 60.79%. This indicates a broader market participation and potential for increased trading liquidity.
• APPLOVIN CORP-CLASS A has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• APPLOVIN CORP-CLASS A has achieved an impressive Relative Strength (RS) rating of 99.39, showcasing its ability to outperform the broader market. This strong performance positions APPLOVIN CORP-CLASS A as an attractive stock for potential price appreciation.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.