Advanced Energy Industries (NASDAQ:AEIS) Emerges as a High-Growth Momentum Stock Under Minervini’s Trend Template

Advanced Energy Industries Inc. (NASDAQ:AEIS) has been recognized as a possible choice for investors seeking high-growth momentum, based on Mark Minervini’s Trend Template method. This strategy blends strict technical screening with fundamental growth metrics to find stocks showing strong upward trends and improving earnings, key traits of top-performing market leaders.

Why AEIS Aligns with the Minervini Trend Template

Mark Minervini’s approach highlights stocks in clear upward trends (Stage 2), backed by solid relative performance and institutional interest. AEIS fits these requirements:

• Price Above Important Moving Averages:

  • The current price ($151.40) is significantly higher than the 50-day ($138.04), 150-day ($118.76), and 200-day SMAs ($117.88).
  • The 50-day SMA is above both the 150-day and 200-day SMAs, confirming positive alignment across timeframes.
  • The 200-day SMA has been rising for months, indicating long-term stability.

• Solid Relative Performance:

  • AEIS has a ChartMill Relative Strength (CRS) score of 88.5, meaning it beats nearly 89% of all stocks.
  • This matches Minervini’s preference for stocks leading their industry.

• Near 52-Week High:

  • The stock is trading within 7% of its 52-week high ($163.08), a sign of continued momentum.
  • It has also gained 102% from its 52-week low ($75.01), showing strong recovery ability.

Strong Growth Momentum Fundamentals

Beyond technical factors, AEIS displays impressive earnings and revenue growth, essential for Minervini’s SEPA (Specific Entry Point Analysis) method:

• Earnings Growth:

  • EPS Growth (Q2Q): +76.5% (latest quarter vs. prior year).
  • EPS Growth (TTM): +26.8% year-over-year.
  • EPS Estimate Revisions (Next Y): Up +9.2% in the last 3 months, reflecting analyst confidence.

• Revenue Growth:

  • Sales Growth (Q2Q): +21.0% (latest quarter).
  • Revenue Estimate Revisions (Next Y): Up +3.8% in 3 months.

• Improving Profit Margins:

  • Latest quarter profit margin: 5.7%, up from -23.8% in the prior year.
  • Steady improvement suggests better cost management and pricing control.

Technical Strength & Setup

According to ChartMill’s Technical Analysis Report, AEIS scores a perfect 10/10 on technical health, with:

• Clear upward trends in both short and long-term timeframes.
• Support levels at $142.19 (trendline) and $134.85-$135.24 (moving averages).
• High relative performance compared to the broader market.

However, the Setup Quality rating is 3/10, suggesting the stock may be overextended after its recent rise. Investors should look for a consolidation or pullback to a key support level before considering an entry.

Conclusion

AEIS represents the kind of stock Minervini’s strategy seeks: strong technicals, high relative performance, and improving fundamentals. While the current setup lacks ideal entry points, the stock remains a high-growth option to watch.

For more stocks meeting these criteria, check the High Growth Momentum + Trend Template Screen.

Disclaimer: This is not investment advice. Our content is for informational and educational purposes only. Read our full disclaimer here.