SMTC: New Highs. Big Volume. Accelerating Growth.
SMTC showed up in our RVOL Now scan in MTS Velocity on Wednesday morning, September 16. Three consecutive sessions of heavy volume followed through Friday’s close as the stock broke out to new 52-week highs.
The setup had been developing: a strong earnings release on August 25, followed by price tightening up the right side of the base before this week’s breakout.
And the numbers behind the chart?
Earnings growth accelerated: +10% → +34% → +73% over the last three reported quarters.
Sales growth accelerated: +9% → +16% → +33% over the same period.
Fund ownership expanded: 460 funds → 610, a 32.6% increase from the previous quarter.
Return on equity: 23.7%.
One-year Relative Strength rating: 96.
Earnings and sales figures above are year-over-year growth.
This is the combination I look for: accelerating earnings and sales, increasing institutional sponsorship, strong relative strength, and strong price and volume action backing the breakout to NEW Highs.
