Advanced Energy Industries (NASDAQ:AEIS) Combines Minervini Trend Template with High Growth Momentum

Advanced Energy Industries (NASDAQ:AEIS) has been found using a screening process that joins Mark Minervini's strict Trend Template method with a High Growth Momentum (HGM) filter. This two-part method looks for companies that not only show solid technical features, indicating they are in a lasting uptrend, but also have the fundamental growth numbers that can support further price gains. The method focuses on stocks in Stage 2 accumulation periods, marked by increasing moving averages and solid relative strength, while also needing proof of quickening earnings and sales growth that interest investors focused on growth.

Meeting the Minervini Trend Template

The basis for this selection is the stock's fit with Minervini's Trend Template, a group of technical rules made to find stocks in strong uptrends. An examination of AEIS verifies it meets the main conditions of this model, placing it in a solid Stage 2 upward move.

• Price Above Key Moving Averages: The stock's present price trades well above its rising 50-day, 150-day, and 200-day simple moving averages. This arrangement points to continued buying interest across short, intermediate, and long-term periods.
• Positive Moving Average Arrangement: The 50-day moving average is positioned above both the 150-day and 200-day averages, and the 150-day average is above the 200-day. This sequential structure verifies a sound, confirmed uptrend.
• Nearness to Highs: The present price is within 3.3% of its 52-week high, fitting well within the template's rule of being within 25%. Stocks trading close to their highs frequently have the drive to keep moving up.
• Solid Rebound: The share price is more than 130% above its 52-week low, showing a strong rebound pattern and notable investor belief.
• Better Relative Strength: With a relative strength ranking of 89, AEIS is doing better than almost 90% of all stocks in the market. Minervini notes that market leaders regularly display high relative strength, as it shows institutional buying and a greater chance of continued better performance.

Fundamentals for High Growth Momentum

Apart from a technically good chart, the High Growth Momentum filter looks for companies showing quickened business results. AEIS displays several fundamental features that match the growth-focused ideas of Minervini's SEPA method, which concentrates on sales, earnings, and profit margin gains.

• Earnings Quickening: The company has reported large year-over-year earnings growth in recent quarters, with the latest quarter showing a 76% rise. This quickening is a main feature Minervini searches for, as "big earnings attract big attention" from institutional investors.
• Positive Earnings Surprises: AEIS has exceeded earnings estimates in all of the last four quarters, with an average surprise of nearly 12%. Steady positive surprises often cause analysts to raise future estimates, creating a positive cycle of increasing expectations.
• Upward Estimate Changes: Analysts have raised their earnings estimates for the next year by almost 9% over the last three months. This upward change is a strong fundamental driver that can push further price drive.
• Sales Growth Re-quickening: After a time of decrease, quarterly sales growth has re-quickened, with the last quarter showing over 20% year-over-year growth. This top-line increase gives a firm base for continued earnings growth.

Technical Health and Setup Summary

The technical analysis report for AEIS gives a solid rating of 9 out of 10, mirroring its good technical health. Both the short-term and long-term trends are rated as positive, and the stock is trading near its 52-week high. The report also mentions a fair setup rating of 7, indicating the stock is settling within a bull flag formation, which could offer a possible entry point as price swings lessen. Key support is found in the $166-$169 area, with resistance just above the present price. A full look at the technical situation, including exact support and resistance points, is available in the full technical report for AEIS.

Finding Similar Opportunities

For investors looking for other companies that match this mix of solid technical trends and high-growth fundamentals, the screening method used to locate AEIS can be a useful instrument. The "High Growth Momentum + Trend Template" screen is made to methodically find such chances.

Disclaimer: This is not investment advice. The information presented is for educational and informational purposes only. It is based on data believed to be reliable, but its accuracy cannot be guaranteed. All investments involve risk, and past performance is not a guarantee of future results. Always conduct your own research and consider consulting with a qualified financial advisor before making any investment decisions.