Investors looking to find stocks with high potential frequently use systematic methods that join technical strength with fundamental momentum. One method is supported by well-known trader Mark Minervini, whose plan centers on finding stocks that are already in strong upward trends and supported by quickening business results. This method, called the Specific Entry Point Analysis (SEPA), sorts possibilities using a fixed Trend Template for technical condition and strict tests for earnings and sales increase. The aim is to discover market leaders at the beginning of their large price advances, where the mix of a good chart and better fundamentals can point to considerable upward possibility.
BOEING CO/THE (NYSE:BA) recently appeared from a stock screen made to find securities that meet both the Minervini Trend Template and show strong growth momentum. This two-step filtering process intends to separate companies that are not only technically good but also showing the sort of operational speed that can support continued price gains.
Reviewing the Technical Trend: The Minervini Template
The center of Minervini's first screening is his Trend Template, a group of fixed technical rules made to confirm a stock is in a verified, long-term upward trend (Stage 2). The template steers clear of low-priced, slower stocks and instead concentrates on strength, needing agreement across several moving averages and nearness to new highs. For a stock like Boeing, passing these rules is the first big step.
A look at the given data shows BA matches the main parts of the Trend Template:
- Trend Agreement: The stock's price is trading above its rising 50-day, 150-day, and 200-day simple moving averages (SMAs). Importantly, the 50-day SMA ($227.40) is above the 150-day SMA ($220.19), which is above the 200-day SMA ($216.36). This ordered, upward-moving arrangement is a classic sign of good upward momentum across time periods.
- Nearness to Highs: BA's present price is within 4.5% of its 52-week high of $254.35, meeting the template's rule to be within 25% of the high. At the same time, the price is about 89% above its 52-week low, showing a strong recovery trend is already clearly in place.
- Relative Strength: With a ChartMill Relative Strength (CRS) score of 85.38, BA is doing better than about 85% of the market. Minervini states that real market leaders usually have RS scores above 70, ideally in the 80s or 90s, as this shows institutional interest and better relative performance.
This technical view indicates BA is not a risky jump but a stock in a clear uptrend with definite momentum, making it a suitable possibility for more study under the SEPA method.
Reviewing the Growth Momentum
Meeting the Trend Template is only the start. The Minervini plan fully includes fundamental study, looking for companies where better financials give the reason for more price growth. The "High Growth Momentum" part of the screen searches for speeding up results in earnings and sales.
Boeing's recent fundamental data shows several good growth paths:
- Earnings Speed Increase: The company has shown large year-over-year EPS growth in recent quarters. The latest quarter saw growth of 81.0%, after earlier quarters with growth of 28.4%, 57.2%, and 56.6%. This sequence of high, following growth is a main trait looked for by growth investors.
- Revenue Recovery: Top-line growth is also solid, with the last quarter reporting a 57.1% rise in revenue year-over-year. This comes after a time of recovery, showing rising demand across its commercial and defense units.
- Profit Margin Growth: Maybe most significantly, the latest quarterly profit margin jumped to 34.0%, a large growth that hints at better operational efficiency and pricing ability as deliveries increase.
While long-term issues stay and some future estimates have been adjusted, the recent quarterly data shows a company in the middle of a strong operational recovery. For growth-focused investors, this mix of speeding earnings, good sales growth, and margin gain gives the fundamental "reason" that Minervini's plan needs to go with a good technical picture.
Technical Condition and Setup Summary
Beyond the basic Trend Template filters, a close technical study gives detail. According to the given ChartMill Technical Report, BA receives a high technical rating of 9 out of 10, confirming very good overall technical condition. The report states both long-term and short-term trends are positive, and the stock is trading near 52-week highs along with the wider market.
Also, the report gives a setup quality rating of 8, showing the stock is now forming a base within its uptrend, which can offer a possible entry point. The study finds a support area between $227.40 and $233.71, made by key moving averages, and notes a recent "pocket pivot" signal, a volume-based sign often linked with institutional buying.
You can review the full, detailed technical analysis for BA here.
A Possibility for More Study
Based on the used screening method, Boeing shows a case that deserves closer look by investors following a growth-and-trend idea. It shows the technical signs of a stock in a continued uptrend, meeting the strict rules of the Minervini Trend Template. Fundamentally, it shows the sort of sharp quarterly speed increase in earnings, sales, and margins that high-growth momentum plans look for. This agreement of a good price trend with better basic business performance is the main idea of the joined approach.
Interested in finding other stocks that now meet this mix of technical strength and growth momentum? You can use the same screen with the link below to see a current list of possible candidates. Find more High Growth Momentum + Trend Template stocks here.
Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. The study is based on given data and a specific screening method. Investors should do their own complete research, think about their risk comfort, and talk with a qualified financial advisor before making any investment choices. Past results do not show future results.
