Bitcoin Depot Inc (NASDAQ:BTM) has emerged as an interesting candidate for growth investors, meeting both the technical criteria of Mark Minervini’s Trend Template and exhibiting strong momentum in key financial metrics. The company, which operates a network of Bitcoin ATMs and provides crypto conversion services, has seen its stock price surge in recent months while showing improving fundamentals.
Why BTM Fits Minervini’s Trend Template
Minervini’s strategy focuses on identifying stocks in strong uptrends with accelerating fundamentals. BTM meets the key technical criteria:
- Price Above Key Moving Averages: BTM trades at $5.99, well above its 50-day ($3.88), 150-day ($2.30), and 200-day ($2.14) moving averages.
- Upward-Trending Averages: The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.
- Strong Relative Strength: With a ChartMill Relative Strength score of 99.42, BTM outperforms nearly all stocks in its sector.
- Price Near 52-Week High: The stock is within 13% of its 52-week high of $6.88 and has surged 403% over the past three months.
High Growth Momentum Factors
Beyond technical strength, BTM shows accelerating growth in key financial metrics:
- Earnings Growth: EPS grew 180% year-over-year in the latest quarter, with forward estimates revised upward by 76% over the past three months.
- Revenue Resilience: Despite a slight year-over-year decline in TTM revenue, recent quarterly sales growth improved to 18.5%, signaling a potential turnaround.
- Profitability Improvement: The company turned profitable in its latest quarter, with a 2.55% profit margin, a significant shift from negative margins in prior periods.
Conclusion
Bitcoin Depot Inc presents a compelling case for growth investors, aligning with Minervini’s trend-following strategy while demonstrating improving fundamentals. The stock’s strong technical setup, coupled with accelerating earnings and revenue revisions, suggests further upside potential if momentum continues.
For a deeper technical breakdown, review the full technical analysis report for BTM.
Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and trend characteristics.
Disclaimer
This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.
