Identifying strong momentum stocks that also exhibit healthy fundamental growth is a challenge many investors face. The approach used here combines two respected methodologies: the Mark Minervini Trend Template for technical strength and a High Growth Momentum (HGM) filter for fundamental acceleration. By screening for stocks that meet the technical criteria of Minervini’s system—such as specific moving average alignments, price positioning relative to 52-week highs and lows, and high relative strength—and then layering on a minimum HGM rating of 4, we narrow the field to names that are not only trending well but also showing accelerating earnings and revenue growth. This dual-filter process is designed to find stocks that are both technically robust and fundamentally accelerating, a combination that historically precedes outsized moves.
ADTRAN HOLDINGS INC (NASDAQ:ADTN) was identified through this screen and warrants a closer look as a potential candidate for both trend-following and growth-oriented investors.
Recent Performance and Trend Template Compliance
ADTN has delivered exceptional price performance over the past year. The stock is up roughly 116.5% over the trailing 12 months and has gained over 30% in the last month alone. Critically, the stock meets every component of the Minervini Trend Template, which is designed to identify stocks in a strong Stage 2 uptrend.
- Current Price Above 150- and 200-Day Moving Averages: At a recent close of $16.93, ADTN trades well above its 150-day SMA of $10.07 and its 200-day SMA of $9.87. Both moving averages are rising, confirming the long-term uptrend.
- Moving Average Alignment: The 50-day SMA ($12.33) is above both the 150- and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. This bullish alignment is a core requirement of the template.
- 52-Week High/Low Proximity: The current price is 138% above the 52-week low of $7.11 and sits within 6% of the 52-week high of $17.99. Being within 25% of the high and far above the low is a Minervini prerequisite.
- Relative Strength: The ChartMill Relative Strength score stands at 95.58, meaning ADTN outperforms more than 95% of all stocks in the database. This comfortably exceeds the required 70 threshold and is in the preferred 80s or 90s range.
This alignment across multiple timeframes and moving averages meets the strict technical conditions of the Trend Template, which reduces the risk of buying into a weak or failing trend.
Fundamental High Growth Momentum
Beyond technical strength, ADTN’s fundamentals show clear acceleration, justifying the HGM rating of at least 4. The company is in the communications equipment space and has delivered strong growth across several key metrics.
- Earnings Growth: EPS (TTM) grew 177% year-over-year. More importantly, this acceleration is not a one-quarter fluke—the last three quarters show sequential improvement in year-over-year EPS growth: 59% (Q-2), 68% (Q-1), and 92% (most recent quarter). The current estimate for the next quarter points to 220% growth.
- Revenue Growth: Revenue (TTM) increased 17.5% year-over-year, with the most recent quarter showing 20% growth. This is a reversal from the prior year’s decline of -19.7% and shows the business is turning around.
- Estimates Revisions: EPS estimates for the next year have been revised upward by 3.4% over the past three months, while revenue estimates for the same period rose 1.6%. Upward revisions are a hallmark of accelerating growth.
- Cash Flow: Free cash flow per share (TTM) is $0.75, up 57.6% from the prior period, indicating the company is generating more cash from its operations.
- Estimate Beats: ADTN has beaten EPS estimates in two of the last four quarters by an average of 42% per beat, which often triggers institutional buying.
This combination of accelerating earnings and revenue, alongside upward estimate revisions, is exactly what the Minervini strategy seeks in its fundamental screens. It signals that the company is not just growing but growing faster than anticipated, which tends to attract large investors.
Technical and Setup Analysis
Taking everything into account, ADTN scores a perfect 10 out of 10 in ChartMill’s technical rating. This reflects consistent strength across both short- and long-term timeframes relative to the broader market. The technical report highlights the following:
- Both the long-term and short-term trends are positive.
- The stock outperformed 95% of all stocks over the past year.
- It is currently forming a bull flag pattern—a pullback after a strong rise that can offer an entry opportunity.
- Volume is healthy, averaging nearly 2 million shares daily.
From a setup perspective, the stock has a Setup Quality score of 7 out of 10. The report notes a consolidation with reduced volatility and a clear support zone near $16.92. An entry near $18.00 (just above the 10-day high) with a stop loss below the support zone offers a risk of about 8.2%, which can be sized to manage portfolio risk.
For a detailed breakdown of these ratings and the underlying analysis, you can view the full ChartMill Technical Report for ADTN.
Finding More Candidates Like ADTN
The screen that identified ADTN combines the Minervini Trend Template filters with a High Growth Momentum rating of at least 4. This ensures candidates have strong technical trends, high relative strength, and accelerating fundamentals.
To run this screen yourself and see all current results, you can use this direct link to the High Growth Momentum + Trend Template Screener. Click the link to explore more stocks that pass these stringent criteria for your own analysis.
Summary
ADTRAN Holdings presents a strong case for investors who follow the Minervini strategy. Technically, it satisfies all Trend Template conditions: rising moving averages in correct alignment, price proximity to its 52-week high, and relative strength above 95. Fundamentally, it shows accelerating EPS and revenue growth, positive estimate revisions, and improving free cash flow. The current chart formation suggests a potential breakout setup with defined risk levels. As always, final decisions should incorporate your own risk management and due diligence.
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 financial situation before making any trading decisions.