BOOT BARN HOLDINGS INC (NYSE:BOOT) Emerges as a High-Growth Momentum Candidate

Boot Barn Holdings Inc (NYSE:BOOT) has become an interesting option for investors using a combined technical and fundamental growth plan. The stock was found using a screening method that joins Mark Minervini's Trend Template with a High Growth Momentum (HGM) rating, a system made to find equities displaying both good price momentum and solid underlying business growth. This two-part method aims to find market leaders early in their growth periods by confirming they are in technically good uptrends while also showing improving fundamental performance.

Meeting the Minervini Trend Template

The base of this screening method lies on the technical rules made popular by well-known trader Mark Minervini. His Trend Template is a structured way made to find stocks in strong, maintained uptrends, which Minervini calls "Stage 2" advances. For a stock to pass, it must meet eight specific technical conditions that confirm both long-term and short-term strength.

A look at BOOT shows it meets these important technical marks:

• Price Above Key Moving Averages: The current price of $187.06 trades well above the rising 50-day ($173.97), 150-day ($150.72), and 200-day ($148.32) simple moving averages. This arrangement confirms the stock is in a bull market phase across several timeframes.
• Moving Average Arrangement: The 50-day moving average is above both the 150-day and 200-day averages, and the 150-day average is above the 200-day. This ordered, rising formation is a standard sign of a strong uptrend and shows increasing momentum.
• Nearness to Highs: The stock is trading within 2.2% of its 52-week high of $191.31, a main trait of market leaders. At the same time, it is 117% above its 52-week low, showing major recovery and growth possibility.
• Better Relative Strength: With a relative strength ranking of 73, BOOT is doing better than almost three-quarters of the market. This is a central part of the Minervini philosophy, which states that the top-performing stocks almost always show better relative strength before their large price gains.

Qualifying as a High-Growth Candidate

Beyond a technically good chart, the plan requires proof of fundamental quality. The High Growth Momentum (HGM) rating measures a company's growth path, and BOOT's financial numbers show a business in a strong growth period.

• Earnings Growth Increase: The company has shown notable and increasing earnings per share (EPS) growth. The most recent quarter showed a 38.1% year-over-year increase, a major increase from the 5.6% growth recorded three quarters before. This sequence of increase is a main point of the Minervini SEPA method, as it often draws institutional interest.
• Good Sales Growth: Revenue growth stays solid, with the last quarter posting a 19.1% year-over-year increase. This top-line growth is an important force for long-term stock increase and shows healthy demand for the company's products.
• Positive Analyst Changes: Analysts have been increasing their estimates, with the average EPS estimate for the next fiscal year rising by 5.87% over the last three months. This upward change is a main fundamental driver Minervini searches for, as it shows growing positive feeling about the company's future outlook.
• Profitability: The company keeps good profit margins, with the last quarter reporting a net margin of 10.6%. The ability to grow sales while keeping healthy margins is a sign of a well-run, high-quality growth company.

Technical Condition and Setup Summary

According to the detailed technical report, BOOT gets a good technical rating of 7 out of 10. The report states that both the long-term and short-term trends are positive, and the stock is trading near its 52-week high. However, the report also points out a low setup quality score of 1, showing that the stock may be overstretched in the short term after its strong performance. For investors thinking about a new position, this indicates a plan of waiting for a possible decline or pause to a main support level, like the area between $171.35 and $174.18 where several important moving averages meet, could provide a better risk/reward entry.

Find More High-Growth Momentum Candidates

The mix of a confirmed uptrend through the Minervini Trend Template and good fundamental growth numbers makes BOOT a notable candidate for investors following this structured plan. For those looking to find similar options, our pre-set screen is updated often.

You can find the most current list of qualifying stocks by visiting the High Growth Momentum + Trend Template screen on ChartMill.

Disclaimer: This analysis is for informational and educational purposes only and should not be taken as investment advice. All investment decisions carry risk, and you should do your own research and talk with a qualified financial advisor before making any investment decisions.