ADVANCED ENERGY INDUSTRIES (NASDAQ:AEIS) Fits the Minervini Trend Template with High Growth Momentum

The method used to find possible investment choices joins a strict technical structure with attention to fundamental growth momentum. This process takes ideas from the tactics of famous trader Mark Minervini, whose Trend Template is made to find stocks in strong, confirmed uptrends. The template applies a sequence of moving average arrangements and price levels to sort for securities showing clear institutional interest and strength. To add to this technical quality, the filter adds a High Growth Momentum (HGM) rating, which measures a company's earnings and sales speed, changes to estimates, and profit margin direction. The aim is to locate companies that are both in a solid price uptrend and supported by getting better business foundations, forming a strong mix for possible high-growth investment.

A Textbook Technical Uptrend

ADVANCED ENERGY INDUSTRIES (NASDAQ:AEIS) presents a clear example of a stock fitting the strict rules of the Minervini Trend Template. This template is important as it makes sure an investor only looks at stocks where the direction is clearly upward, missing the problems of buying a declining stock or purchasing during a weak, temporary rise.

A look at AEIS's chart and main numbers shows an almost exact fit with the template's rules:

• Price Above Key Averages: The stock's last price of $217.51 trades well above its rising 50-day ($207.31), 150-day ($166.16), and 200-day ($149.87) simple moving averages (SMAs). This ordered arrangement is a typical signal of a continuing Stage 2 advance.
• Moving Average Alignment: The nearer-term 50-day SMA is positioned above both the 150-day and 200-day SMAs, while the 150-day SMA is above the 200-day SMA. This positive order confirms increasing momentum across several time periods.
• Proximity to Highs: With a 52-week high of $232.05, AEIS's present price is within 6.3% of its yearly top. Minervini's plan stresses that real market leaders often trade close to their highs, not staying far below them. Also, the stock is about 190% above its 52-week low of $75.01, showing a strong recovery and trend.
• Superior Relative Strength: Maybe most significant is the stock's ChartMill Relative Strength (CRS) score of 94.55. This shows AEIS has done better than almost 95% of all stocks in the market over the past year. High relative strength is a central part of the method, as it finds sector and market leaders that institutions are buying.

The Fuel for the Trend: High Growth Momentum

A solid chart is frequently a sign of a solid core business. The High Growth Momentum filter works to find the fundamental "fuel" pushing the price movement. AEIS does very well here too, showing clear betterment across main financial numbers that growth investors focus on.

• Earnings Acceleration: The company is showing fast earnings growth on a quarterly basis. The latest quarter showed year-over-year EPS growth of 77.6%, after a 76.5% rise in the quarter before. This speeding up is a strong force that draws institutional notice, a main idea of the growth-centered plan.
• Consistent Earnings Surprises: AEIS has exceeded analyst EPS estimates in all of the last four quarters, with an average beat of 14.7%. Steady positive surprises build trust with investors and often result in higher estimates for future periods.
• Upward Estimate Revisions: Analysts are paying attention, increasing their forecasts. The average EPS estimate for the next fiscal year has been increased by 9.47% over the last three months. Rising estimates give a fundamental support for the stock price.
• Strong Sales Growth: Revenue growth stays solid, with the last quarter up 23.8% year-over-year. This top-line growth verifies that demand for the company's precision power products is good.
• Getting Better Profitability: After a time of margin pressure, recent quarters show a hopeful recovery. The profit margin in the last reported quarter was 9.97%, a notable step-by-step improvement and a good signal for future earnings potential.

Technical Health and Setup Assessment

Beyond the Trend Template list, a wider technical study of AEIS shows very good health. The stock gets a complete ChartMill Technical Rating of 10 out of 10, putting it with the best performers in the market from a trend view. Both its short-term and long-term trends are scored as positive.

The technical report also mentions a good setup quality, with a rating of 8. The stock has been moving in a range between about $200 and $224 over the past month, letting some price movement settle. This movement within an uptrend can sometimes come before the next upward move. The report finds main support near the $206-$207 area, which matches closely with the rising 50-day moving average, and notes little close overhead resistance.

For a complete look at the support and resistance levels, and a sample trade setup from this study, you can see the full ChartMill Technical Report for AEIS.

A Candidate for Further Research

ADVANCED ENERGY INDUSTRIES shows the kind of security looked for by a joined technical and growth momentum filter. It shows the controlled price structure required by the Minervini Trend Template, indicating solid institutional support and a definite uptrend. At the same time, its fundamental picture shows the sort of speeding earnings, positive surprises, and higher estimates that give a fundamental reason for the price strength.

This mix works to find leaders early in their growth phase. Investors looking for other choices that fit this blend of strong trend and high-growth foundations can examine the filter that found AEIS. Click here to view more results from the High Growth Momentum + Trend Template screen.

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Disclaimer: This article is for informational and educational purposes only. It is not a recommendation to buy or sell any security. The analysis is based on data provided and certain screening methodologies. Investors should conduct their own thorough research, consider their financial situation and risk tolerance, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.