Alphatec Holdings Inc (NASDAQ:ATEC) Fits the Minervini Trend Template with Strong Growth Momentum

Alphatec Holdings Inc (NASDAQ:ATEC) has recently appeared on a specific screen made to find stocks that fit Mark Minervini’s strict Trend Template while also showing solid high-growth momentum traits. This two-part method aims to find companies that are both in strong technical uptrends and supported by improving fundamental growth, a pairing that has been seen in many of the market's biggest past successes.

The Minervini Trend Template Fit

Mark Minervini’s Trend Template is a structured way to find stocks in a confirmed Stage 2 uptrend, the main phase where large growth often happens. The template uses a set of fixed technical rules to make sure a stock has both short-term and long-term momentum. An examination of ATEC’s chart shows a strong fit with these rules.

The stock’s current price action and moving average setup meet the main ideas of the Trend Template:

• Price Above Key Moving Averages: ATEC’s last price of $20.72 trades well above its rising 50-day ($15.82), 150-day ($13.50), and 200-day ($12.80) simple moving averages.
• Upward-Sloping Averages: The 200-day moving average has been moving upward, confirming a positive long-term trend. The 50-day moving average is also above both the 150-day and 200-day averages, showing solid intermediate-term momentum.
• Proximity to Highs: The stock is trading within 1.5% of its 52-week high of $21.04, meeting the rule of being within 25% of its high. It also sits 153% above its 52-week low of $8.18, showing major recovery and strength.
• Superior Relative Strength: With a ChartMill Relative Strength rating of 96.12, ATEC is doing better than most of the market. Minervini states that real market leaders almost always have a high relative strength rank, usually above 70, as it shows institutional demand and better performance.

This technical view is important for the Minervini method because it concentrates on strength instead of looking for bargains. By only investing in stocks that are already in clear uptrends and showing leadership, traders place themselves where potential momentum is greatest.

High Growth Momentum Fundamentals

Besides a clean chart, the Minervini method puts a lot of focus on fundamental improvement. The "High Growth Momentum" part of the screen makes sure the company's business performance is matching, or even causing, its stock price increase. ATEC’s financial numbers show a company in a solid growth period.

The company is showing solid and improving top-line growth, a main factor for high-growth investors:

• Revenue Acceleration: Quarterly revenue growth has been consistently solid, with the most recent quarter showing a 30.4% year-over-year increase. The previous quarters also showed strong growth of 27.5%, 22.2%, and 28.1%, pointing to a continued pattern.
• Earnings Momentum: While the company is not yet profitable on a net income basis, its earnings per share (EPS) path is getting better noticeably. The most recent quarter saw EPS grow by 32.1% compared to the same quarter last year, a good signal of operational leverage and margin improvement.
• Estimate Revisions: Analysts have raised their revenue estimates for the next year by almost 3% over the last three months, showing increasing confidence in the company's growth outlook.

For growth investors, these numbers are essential. Minervini’s work indicates that the largest stock market winners almost always have strong sales and earnings growth before their major price advances. The mix of solid revenue growth, a better earnings pattern, and positive analyst sentiment gives a fundamental reason that can support a long-term uptrend.

Technical Health and Setup Evaluation

According to the detailed ChartMill Technical Report, ATEC is in very good technical health. The report gives the stock a perfect technical rating of 10 out of 10, noting its steady performance across both short and long-term periods. The long-term and short-term trends are both rated as positive, and the stock is showing notable strength relative to both the overall market and its Health Care Equipment & Supplies industry group.

The report does state, however, that while the technical rating is very good, the current setup quality is lower because of recent volatile price action. The stock has been trading in a wide range over the past month and is currently near the top of that range. For traders following Minervini’s Specific Entry Point Analysis (SEPA), this implies that while ATEC is a solid candidate for a watchlist, the best low-risk entry point may come during a future time of consolidation or pullback toward known support levels, which are listed in the report.

You can review the full, detailed technical analysis for ATEC here.

Conclusion

Alphatec Holdings Inc presents a strong case for investors following a high-growth momentum strategy. It successfully meets the strict technical filters of the Minervini Trend Template, confirming it is in a strong Stage 2 uptrend with superior relative strength. Fundamentally, the company is showing the type of improving revenue growth and better earnings path that high-growth investors look for. While the current large price move suggests waiting for a more favorable entry, the basic technical and fundamental view places ATEC as a stock deserving of close attention.

This stock was found using a focused screen for high-growth momentum stocks that also fit the Minervini Trend Template. You can use this link to explore the screen and discover other potential candidates that fit this strict criteria.

Disclaimer: This is not investment advice. This analysis is for informational and educational purposes only. It is based on current data and a specific investment methodology, but past performance is not indicative of future results. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment decisions.