How does ALIGNMENT HEALTHCARE INC (NASDAQ:ALHC) stack up against Mark Minervini’s strategy?

Our stock screener has spotted ALIGNMENT HEALTHCARE INC (NASDAQ:ALHC) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for ALHC:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Exploring ALHC's Growth

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. ALHC was assigned a score of 5 for growth:

Earnings Momentum

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), ALHC highlights its ability to generate increasing profitability, showcasing a 40.0% growth.
• The earnings per share (EPS) growth of ALHC is accelerating: the current Q2Q growth of 40.0% is above the previous quarter Q2Q growth of 22.22%. Earnings momentum and acceleration are key for high growth systems.
• EPS acceleration happened 3 quarters in a row.
• ALHC has achieved 50.68% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• With notable 1-year revenue growth of 48.25%, ALHC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• Over the past 3 months, analysts have adjusted their EPS Estimate for ALHC with a 37.99% change. This highlights the evolving outlook on the company's EPS potential.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, ALHC showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• ALHC has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• ALHC has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.

Institutional Confidence & Market Strength

• The ownership composition of ALHC reflects a balanced investor ecosystem, with institutional shareholders owning 60.36%. This indicates a broader market participation and potential for increased trading liquidity.
• ALHC has exhibited strong Relative Strength(RS) in recent periods, with a current 98.71 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How do we evaluate the setup for ALHC?

ChartMill also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, ALHC exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, ALHC also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 15.80. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for ALHC in the last couple of days, which is a good sign.

Check the latest full technical report of ALHC for a complete technical analysis.

Concluding

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.