Should you consider NYSE:LRN for high growth investing?

Our stock screener has detected a potential breakout setup on STRIDE INC (NYSE:LRN). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:LRN.

In-Depth Technical Analysis of NYSE:LRN

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, LRN scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, LRN has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that LRN is one of the better performing stocks in the market, outperforming 96% of all stocks. We also observe that the gains produced by LRN over the past year are nicely spread over this period.
• LRN is part of the Diversified Consumer Services industry. There are 71 other stocks in this industry. LRN outperforms 95% of them.
• LRN is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• LRN is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

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

How do we evaluate the setup for NYSE:LRN?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:LRN currently has a 7 as setup rating:

LRN has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 139.33, a Stop Loss order could be placed below this zone.

Why NYSE:LRN may be interesting for high growth investors.

• The recent financial report of STRIDE INC demonstrates a 31.82% 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
• Over the past 3 years, STRIDE INC has demonstrated 39.51% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• STRIDE INC has seen a 15.97% 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 STRIDE INC have shown a 31.82% 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
• accelerating EPS growth for STRIDE INC: the current Q2Q growth of 31.82% exceeds the previous year Q2Q growth of 29.41%.
• With positive growth in its operating margin over the past year, STRIDE INC showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• With positive growth in its free cash flow (FCF) over the past year, STRIDE INC 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.
• STRIDE INC exhibits a strong Return on Equity (ROE) of 20.46%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• STRIDE INC maintains a healthy Debt-to-Equity ratio of 0.35. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• With a track record of beating EPS estimates in the last 4 quarters, STRIDE INC showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.
• STRIDE INC has exhibited strong Relative Strength(RS) in recent periods, with a current 96.5 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. STRIDE INC shows promising potential for continued price momentum.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.