2 Stocks With Strong Fundamentals Gaining Technical Momentum

Key Points

• Technical and fundamental analysis can both add value in evaluating stocks.
• The two stocks on this list were high-flyers not too long ago. However, a disappointing earnings report kicked off huge slides in their stock prices.
• Two technical indicators have flashed recently, indicating positive momentum for these beaten-down names.

Technical indicators are commonly used analytical tools that can provide interesting insights into a stock's journey and potential future. "Technicals," as they are often called, focus on a stock's price movement or its chart. Technical analysis differs from fundamental analysis. The latter looks at a business's financial and strategic success. Some analysts swear by one or the other. However, both have their merits, and investors can use them to paint a more complete picture of a particular stock.

This analysis examines two technical indicators in evaluating two stocks with strong fundamentals. The first is the Relative Strength Index (RSI). These two stocks have recently seen their RSI rise above 30, a bullish indicator. The second is the Moving Average Convergence Divergence (MACD).

These two stocks have recently seen their MACD histogram rise above zero, another bullish indicator. Together, these indicators signal that trading momentum is turning positive. See the following links for more info on the Relative Strength Index and the Moving Average Convergence Divergence.

The Trade Desk: RSI Eclipses 30, a Positive Sign for This Battered Name

First up is The Trade Desk NASDAQ: TTD. The Trade Desk saw its shares fall hard after its last earnings release on Feb. 12, pushing its RSI well below 30. It remained below that level for over a month. However, at the beginning of the Mar. 24 trading week, The Trade Desk’s RSI rose above 30.

It now sits at around 37 as of the March 25 close. Additionally, the stock saw its MACD histogram start rising above zero at the beginning of the March 12 trading week. These indicators signal that bullish momentum is rising for The Trade Desk, a stock that has suffered greatly since it reached a 52-week high in early December. The Trade Desk is still down 56% from that high.

The Trade Desk went on a massive run from Sept. 2016 to mid-Dec. 2020, rising around 3000%. After losing nearly half of its value over the next two years, The Trade Desk went on another big run, gaining around 200% from Jan. 2023 to Jan. 2025. However, a disappointing earnings report and overall valuation concerns caught up with the stock, tanking its value recently.

The ad-tech giant has achieved tremendous financial success over the years, with revenue growing over 20% every year since 2015. The company operates in the connected TV advertising business. Connected TV ad spending has grown rapidly, while linear TV ad spending is falling dramatically. Analysts expect CTV ad spending to overtake linear TV ad spending in 2028.

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This trend is one factor that makes many bullish on The Trade Desk. The stock is gaining technical momentum, signaling a potential opportunity. However, the firm will need to deliver in future earnings reports to rebound.

Deckers Outdoor: RSI and MACD Indicate Positive Momentum as Price Targets Hold Strong

Next is Deckers Outdoor NYSE: DECK. The shoe company has seen a massive uptick in its stock price over recent years. This is largely due to the incredible success of its HOKA shoe brand. The company’s UGG brand also returned to growth in 2024, another big factor in the stock’s run-up. Deckers grew earnings by 47% in 2024. However, the stock's fate mirrored that of The Trade Desk after its last earnings release.

It dropped sharply in late Jan. and has continued falling steeply, now trading 45% below its 52-week high. But, the beginning of the Mar. 24 trading week saw the stock’s RSI rise above the 30-line, which it had been below for over a month. Additionally, the stock’s MACD histogram has risen increasingly above zero since the beginning of the Mar. 17 trading week.

This is a stock many analysts are bullish on. MarketBeat monitored eight updates on Wall Street price targets for Deckers Outdoor following its latest earnings report. Their average price target was $230. This implies a nearly 86% upside from the stock’s Mar. 24 closing price. On average, these analysts' pre-earnings and post-earnings price targets were largely the same. 

This is a significant divergence from the stock’s massive 45% drop-off since earnings. However, much of this drop has been due to general market sentiment, which has crushed many strong performers. This is especially true for Deckers’ sector, consumer discretionary, the worst-performing sector in 2025 as of the Mar. 24 close.

The emergence of positive momentum in this quality business might signal that the worst is coming to an end for Deckers Outdoor. However, further deterioration in consumer spending and sentiment remains a significant risk for this stock.