Does MUELLER WATER PRODUCTS INC-A (NYSE:MWA) meet the Minervini criteria?

Our stock screener has spotted MUELLER WATER PRODUCTS INC-A (NYSE:MWA) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for MWA:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Why MWA may be interesting for high growth investors.

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. MWA scores a 6 out of 10:

Earnings Momentum

• MWA has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 92.31% increase. This indicates improving financial performance and the company's effective management of its operations.
• MWA shows accelerating EPS growth: when comparing the current Q2Q growth of 92.31% to the previous quarter Q2Q growth of 15.79%, we see the growth rate improving.
• MWA has experienced 70.31% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 18.68%, MWA showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• MWA shows accelerating Sales growth: when comparing the current Q2Q growth of 18.68% to the previous quarter Q2Q growth of 15.53%, we see the growth rate improving.
• Sales growth accelerated for 3 quarters in a row.
• MWA 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.

Profitability & Financial Strength

• With positive growth in its operating margin over the past year, MWA 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.
• MWA has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• With a favorable trend in its free cash flow (FCF) over the past year, MWA demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• MWA showcases a robust Return on Equity (ROE) of 16.41%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• A Debt/Equity ratio of 0.54 suggests that MWA is managing its debt levels responsibly.

Market Strength

• MWA has exhibited strong Relative Strength(RS) in recent periods, with a current 95.42 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How does the Setup look for MWA

ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, MWA has a 8 as its setup rating, indicating its current consolidation status.

MWA has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 25.97, a Stop Loss order could be placed below this zone.

For an up to date full technical analysis you can check the technical report of MWA

More like this

It looks like MUELLER WATER PRODUCTS INC-A meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.