Range Resources Corp. (NYSE:RRC) recently caught our attention through a screen designed to pinpoint stocks that combine high growth momentum characteristics with attractive technical setups. The strategy behind this filter is straightforward: we look for companies with accelerating earnings and sales growth, positive analyst revisions, and expanding profit margins, hallmarks of high growth momentum investing popularized by CANSLIM and Mark Minervini methodologies. Then, we overlay a technical filter to ensure these stocks also exhibit strong price trends and are consolidating in a pattern that suggests a potential breakout. This dual approach aims to identify opportunities where fundamental strength and technical timing align.
High Growth Momentum Fundamentals
Range Resources presents a strong case for high growth momentum investors based on its fundamental metrics. The company scores a 6 out of 10 on our proprietary High Growth Momentum (HGM) rating, which is a solid result given that a score of 5 or higher can already flag interesting candidates.
Digging into the numbers that drive that rating:
- Earnings Growth: The trailing twelve-month (TTM) EPS stands at $3.57, with EPS growth over the past TTM year at 38.4%. Earnings have been accelerating on a quarter-over-quarter (Q2Q) basis: the most recent quarter showed EPS growth of 58.3% versus the same quarter last year, up from 20.6% in the prior quarter and 18.8% two quarters ago. This acceleration is a key component of the HGM rating, as it signals increasing momentum.
- Sales Growth: Revenue growth has also been strong, with the latest quarter delivering a 28.6% year-over-year increase, following 15.8% and 15.4% in the previous two quarters. Consistent sales acceleration is another pillar of the strategy.
- Profit Margins: The profit margin has expanded in recent quarters. The most recent quarter reported a margin of 32.0%, up from 22.7% in the prior quarter, a positive sign for earnings quality and operational efficiency.
- Estimates and Surprises: Range Resources has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 7.0%. Moreover, analysts have revised their next-year EPS estimates upward by 3.3% over the last three months, and revenue estimates are up 2.9%. Positive revisions are a critical element in the momentum framework.
These factors—accelerating earnings and sales, expanding margins, and analyst upgrades—all contribute to the HGM rating and suggest the company remains on a strong growth trajectory.
Technical Strength and Setup Quality
From a technical perspective, the picture is equally encouraging. Range Resources earns a Technical Rating of 7 out of 10 and an even stronger Setup Rating of 8 out of 10, according to our technical analysis report.
- Technical Rating (7/10): The stock’s long-term trend is positive, and it has outperformed 74% of all stocks over the past year. The 50-day, 100-day, and 200-day simple moving averages are all rising, confirming a solid uptrend. While the short-term trend is neutral and the stock has pulled back recently (trading near the low of its recent 40.27–48.31 range), medium-term indicators remain favorable.
- Setup Rating (8/10): This higher score reflects a tight consolidation pattern. The stock is trading near a well-defined support zone between $41.60 and $42.18, formed by multiple moving averages and trend lines. Volatility is decreasing, and a recent Pocket Pivot signal was observed, which is a bullish volume/price accumulation pattern. Given these conditions, a potential buy stop entry around $44.24 (just above the 10-day high) with a stop loss near $41.59 (below the support zone) is suggested, limiting worst-case risk to about 6%.
The combination of a high TA rating and a very high Setup rating indicates that Range Resources not only has solid technical health but is also forming a pattern that traders often seek for entry.
Market Context and Relative Performance
It is worth noting that the broader S&P 500 has recently been trading near new highs, while Range Resources is in the middle of its 52-week range, implying it has lagged the market somewhat. However, this relative weakness can sometimes provide a better risk/reward entry if the fundamental story remains intact. The stock’s relative strength is still in the 74th percentile, showing it has been a strong performer over the longer term.
Screening for More Opportunities
If you are interested in finding similar stocks that combine high growth momentum with strong technical setups, you can run the same screen we used. View the full list of current candidates to see other securities that meet these criteria.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making any trading decisions.