Why MUELLER WATER PRODUCTS INC-A (NYSE:MWA) qualifies as a high growth stock.

Our stock screener has detected a potential breakout setup on MUELLER WATER PRODUCTS INC-A (NYSE:MWA). 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:MWA.

Analyzing the Technical Aspects

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, MWA scores 8 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that MWA is one of the better performing stocks in the market, outperforming 88% of all stocks. We also observe that the gains produced by MWA over the past year are nicely spread over this period.
• MWA is part of the Machinery industry. There are 130 other stocks in this industry. MWA outperforms 86% of them.
• MWA 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 MWA is lagging the market slightly.
• In the last month MWA has a been trading in the 21.35 - 23.80 range, which is quite wide. It is currently trading near the high of this range.

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

Why is NYSE:MWA a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:MWA exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, MWA also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 22.15, a Stop Loss order could be placed below this zone.

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

• The EPS of MUELLER WATER PRODUCTS INC-A has exhibited growth from one quarter to another (Q2Q), with a 15.79% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Analysts' average next Quarter EPS Estimate for MUELLER WATER PRODUCTS INC-A has witnessed a 28.89% change in the last 3 months, underscoring the dynamic nature of market sentiment towards the company's EPS prospects.
• The recent financial report of MUELLER WATER PRODUCTS INC-A demonstrates a 15.79% 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
• MUELLER WATER PRODUCTS INC-A has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With positive growth in its free cash flow (FCF) over the past year, MUELLER WATER PRODUCTS INC-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.
• The Return on Equity (ROE) of MUELLER WATER PRODUCTS INC-A stands at 14.31%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• With a Debt-to-Equity ratio at 0.55, MUELLER WATER PRODUCTS INC-A showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• MUELLER WATER PRODUCTS INC-A has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• MUELLER WATER PRODUCTS INC-A has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 88.82 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. MUELLER WATER PRODUCTS INC-A is well-positioned for potential price growth opportunities.

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

Keep in mind

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.