Boot Barn Holdings Inc (NYSE:BOOT) Combines Minervini Trend Template with High Growth Momentum

In the search for stocks with high potential, many investors use systematic methods that combine detailed technical study with basic growth measures. One method is supported by well-known trader Mark Minervini. His plan centers on finding stocks in strong upward movements that also have improving business foundations. This two-part method tries to identify market leaders near the start of their major price gains. A real-world use of this idea includes looking for stocks that first pass the exact technical rules of Minervini's Trend Template, verifying a solid price trend exists, and then adding a check for strong growth momentum to affirm the business strength. This method tries to distinguish simply adequate stocks from those with a chance for outstanding results.

Boot Barn Holdings Inc (NYSE:BOOT) recently appeared from such a search, offering an example of how a company can fit both the technical rules of trend following and the basic requirements of growth investing.

Reviewing the Technical Base: The Minervini Trend Template

The center of Minervini's stock picking is the Trend Template, a group of fixed technical rules made to find stocks in a clear Stage 2 upward trend. The template stresses price trading above important moving averages, correct order of those averages, and being near new highs, all signs of institutional buying and continued momentum. For a growth investor, these technical states are not just chart shapes; they show the market's combined opinion on a company's future, often seeing basic gains before they are completely known.

A look at Boot Barn's chart shows a strong technical view that matches the Trend Template rules:

• Price vs. Moving Averages: The stock's last price of $204.71 trades well above its rising 50-day ($186.77), 150-day ($173.71), and 200-day ($156.50) simple moving averages. This ordered position shows positive momentum across different time periods.
• Moving Average Order: The 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. This step-by-step order confirms a completely positive trend shape.
• Nearness to Highs: With a current price only 2.6% under its 52-week high of $210.25, BOOT shows the force typical of market leaders. Also, the stock trades about 138% above its 52-week low, showing a strong recovery and upward trend already happening.
• Relative Strength: A ChartMill Relative Strength (CRS) score of 88.37 shows BOOT is doing better than almost 90% of all stocks, a main point of Minervini's focus on relative strength as a sign of leadership.

This technical condition is outlined in the given technical study report, which gives BOOT a high technical score of 9 out of 10, stating both its long and short-term trends are positive and that it is a top performer in the Specialty Retail industry.

Checking the Growth Driver: High Growth Momentum

While a good chart is necessary, Minervini's plan gives similar weight to the basic reason, the "why" behind the price movement. For growth investors, this means steady and quick increases in earnings and sales. The "High Growth Momentum" part of the search looks for companies showing this exact quality.

Boot Barn's recent financial numbers give clear proof of a solid growth path:

• Earnings Growth Increase: The company displays notable and increasing year-over-year EPS growth in recent quarters: 27.1% (Q-2), 38.1% (Q-1), and 44.2% in the last reported quarter. This sequence of increase is a strong sign to growth investors, pointing to positive business momentum.
• Good Sales Growth: Revenue growth has stayed solid and steady, with the last three quarters showing year-over-year gains of 16.8%, 19.1%, and 18.7%. This sales strength gives a firm base for earnings growth.
• Analyst Belief: The average guess for next year's earnings has been raised by 8.25% over the past three months, showing more analyst hope about the company's future profits, a point Minervini notes as a key reason for movement.
• History of Exceeding Guesses: The company has exceeded EPS guesses in three of the last four quarters, building trust with investors.

Combination: A Meeting of Trend and Growth

For investors using a Minervini-like method, BOOT offers a strong meeting. The strict Trend Template rules are met, showing the view of a stock in a clear upward trend with good institutional support. At the same time, the high growth momentum numbers confirm this price movement is not based on guesswork but is supported by real, quickening business results. The company is not just going higher; it is doing so because of growing profits and sales, with rising analyst belief.

The given technical report supports this combination, stating that BOOT "has an excellent technical rating and also presents a decent setup pattern," with prices settling near highs and little resistance above. The report lists several support levels, giving a plan for risk control, which is a key part of careful trading.

A full list of the technical study, including exact support areas and trade setup possibilities, is in the complete ChartMill Technical Report for BOOT.

Finding Like Possibilities

Boot Barn shows the kind of stock that can be found by regularly using mixed technical and basic filters. For investors wanting to look for other stocks that meet similar rules of strong trending action and high-growth basics, the search process that found BOOT can be a beginning.

You can examine the present market for similar high-growth momentum stocks following the Trend Template by using this set search.

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Disclaimer: This article is for information and learning only. It is not advice to buy or sell any security. The study is based on given data and certain search methods. Investors should do their own complete research, think about their personal risk comfort, and talk with a qualified financial advisor before making any investment choices. Past results do not show future outcomes.