Alignment Healthcare Inc (NASDAQ:ALHC) Emerges as a Top Minervini Trend-Following and Growth Momentum Pick

Alignment Healthcare Inc (NASDAQ:ALHC) has appeared as a notable option for investors using the Mark Minervini trend-following plan mixed with high growth momentum filters. This process methodically finds stocks displaying solid technical condition through Minervini's Trend Template standards while also needing strong fundamental growth traits. The plan centers on securities showing continued upward price movement, controlled risk management limits, and improving business basics that may lead to continued strong performance.

Technical Strength and Trend Compliance

Alignment Healthcare shows very good technical traits that match Minervini's strict Trend Template needs. The stock now trades higher than all main moving averages, with its price situated well above the 50-day ($16.15), 150-day ($15.72), and 200-day ($15.28) simple moving averages. This multi-timeframe agreement points to organized positive movement across short, intermediate, and long-term trends.

The moving average arrangement shows a classic positive formation:

• The 50-day SMA ($16.15) trades higher than both the 150-day ($15.72) and 200-day ($15.28) SMAs
• The 150-day SMA ($15.72) stays in its place above the 200-day SMA ($15.28)
• All main moving averages show upward angles, confirming continued purchasing demand

These technical features meet Minervini's central idea that the strongest performers come from set uptrends, offering a structural benefit for continued price gains.

Relative Strength and Market Leadership

The stock's relative strength numbers highlight its market leader status. With a ChartMill Relative Strength reading of 91.58, Alignment Healthcare does better than about 92% of all stocks in the market. Inside the competitive Health Care Providers & Services field, the company places in the top 14%, doing better than 86% of its 100 industry counterparts.

This very good relative performance fits with Minervini's focus on concentrating only on market leaders. The plan states that stocks showing better relative strength during market rises usually continue to lead during continued uptrends, as institutional money moves toward the strongest performers.

Growth Momentum Fundamentals

Alignment Healthcare's fundamental picture shows speeding growth across several main measures, backing its high growth momentum grade:

Earnings Acceleration Pattern:

• Most recent quarter EPS growth: 153.85% year-over-year
• Previous quarter EPS growth: 80% year-over-year
• Two quarters prior EPS growth: 40% year-over-year
• Three quarters prior EPS growth: 22.22% year-over-year

Revenue Expansion Path:

• TTM revenue growth: 49.46% year-over-year
• Current quarter revenue growth: 49.03% year-over-year
• Steady historical revenue growth across several years

Analyst Confidence and Revisions:

• EPS next year revisions (3 months): +46.95%
• Perfect earnings beat record: 4 out of last 4 quarters
• Average EPS beat magnitude: 69.56% above estimates

These speeding fundamental trends match Minervini's finding that "big earnings attract big attention," especially when joined by positive estimate changes from analysts.

Price Performance and Positioning

The stock's price movement shows several positive traits:

• Current price is 70.7% higher than its 52-week low of $10.11
• Trading within 18% of its 52-week high of $21.06
• Shows a bull flag formation, hinting at possible continuation
• All main moving averages angling upward with correct order

This price placement meets Minervini's standards that good options should show major comeback from lows while staying near new highs, indicating continued movement without too much stretching.

Technical Analysis Overview

According to ChartMill's technical report, Alignment Healthcare receives a perfect technical grade of 10/10, reflecting very good technical condition across all checked timeframes. The setup quality gets a solid 8/10, suggesting the stock is coming out of a consolidation phase with lower volatility. The study finds several support levels between $17.07-$17.25 and $15.86-$16.15, giving clear risk management limits. Resistance is seen in the $17.53-$17.62 area, with a move above this zone possibly starting more upward movement.

View the complete technical analysis report for ALHC

Investment Considerations

For investors following the Minervini plan, Alignment Healthcare offers a notable case joining technical excellence with fundamental speeding. The stock's fit with the Trend Template standards gives a structural technical benefit, while its speeding earnings growth, strong revenue growth, and solid analyst change trends indicate fundamental movement may be lasting. The healthcare services field keeps seeing structural support from population trends and regulatory changes, possibly giving more catalysts.

Discover more high growth momentum stocks meeting the Minervini Trend Template criteria

Disclaimer: This analysis is for informational and educational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results, and all investments carry inherent risks, including potential loss of principal.