Cadre Holdings Inc (NYSE:CDRE) Combines Minervini Trend Strength with High Growth Momentum

The method used to find possible investment choices joins a strict technical structure with attention to fundamental growth speed. This process is guided by the tactics of noted trader Mark Minervini, whose Trend Template offers an ordered list to separate stocks showing solid, confirmed upward trends. The template focuses on price trading above important moving averages, nearness to 52-week peaks, and better relative performance, all signs of market strength. To add to this technical condition, the filter applies a High Growth Momentum (HGM) score, which measures a company's earnings and sales speed increase, profit margin direction, and analyst estimate changes. The aim is to locate securities where strong price trends are backed by the basic business speed, forming a combination of technical and fundamental condition that has often come before notable price gains.

Technical Condition: Following the Minervini Trend Template

Cadre Holdings Inc (NYSE:CDRE) displays a strong technical view that matches the requirements of the Minervini Trend Template. This template is made to sort for stocks in a clear Stage 2 rise, where the chance for a continued upward trend is greatest.

An examination of the main points shows CDRE fits the important technical measures:

• Trend Position: The stock's present price rests well above its increasing 50-day ($41.21), 150-day ($35.61), and 200-day ($34.50) simple moving averages. This layered, upward order of shorter-term averages above longer-term ones is a standard mark of lasting positive speed.
• Nearness to Peaks: With a present price of $42.61, CDRE is trading within 9% of its 52-week peak of $46.64 and sits about 57% above its 52-week low. This meets the template's need for a stock to be within 25% of its peak and at least 30% above its low, showing it is a market frontrunner, not a straggler in improvement.
• Relative Performance: A ChartMill Relative Strength (CRS) score of 87.56 shows CDRE is doing better than almost 88% of the wider market. Minervini regularly notes that the largest gainers display better relative performance early in their advances, as it points to institutional buying and a separation from general market activity.

This technical base is important because it clearly spots a stock that is already in a strong upward trend, thus avoiding the dangerous task of trying to buy a declining stock or wagering on a recovery before proof confirms it.

Fundamental Speed: The Driver for High Growth

While the Trend Template spots the "how" of the price action, the High Growth Momentum score tries to clarify the "why." For CDRE, the basic business results give a solid fundamental reason for its technical upward move.

The company, a maker of safety and survival gear for first responders and military staff, is showing increasing financial results:

• Strong Earnings Increase: The latest quarter had earnings per share jump 200% year-over-year. While this is partially from an easier comparison to the year before, it comes after a trend of good growth, with the two earlier quarters showing rises of 28% and 27.8%.
• Good Sales Growth: Revenue increase has been just as notable, with the last quarter growing over 42% year-over-year. This follows a full-year revenue growth direction that increased to 17.6% in the last reported fiscal year.
• Steady Performance: The company has surpassed analyst EPS forecasts in three of the last four quarters, with an average beat over 17%. This record of beating forecasts builds trust with investors and can lead to positive estimate changes, a main factor for more price gains.

This pairing of increasing top-line growth and strong bottom-line growth is exactly what high-growth investors look for. It indicates the company is not only getting more market share but is doing so with profit, creating a business model that can grow and support a higher value.

Combination: When Trend and Growth Meet

The investment idea for CDRE depends on the strong link between its technical state and fundamental speed. The Minervini Trend Template confirms that the market is seeing this bettering fundamental story, as shown by the maintained upward trend and high relative performance. The stock is not low-priced after its rise, but high-growth investing often includes paying more for better growth rates and speed. The main risk control principle of the Minervini method, using set stop-losses based on technical points, lets investors take part in the possible extension of this trend while firmly capping loss risk.

Technical Examination Summary

A look at the full ChartMill Technical Report for CDRE gives the stock a high technical score of 8 out of 10, noting its steady results across both short and long-term periods. The report points out that the stock is trading close to the top of its recent sideways range, which may offer a clear entry chance. Important support areas are found in the $41.21-$41.29 and $40.24-$40.30 ranges, with nearby resistance seen around $43.46. The setup score of 6 indicates a reasonable, though not ideal, sideways pattern has developed, with lower volatility as prices have come together in recent trading.

Find Like Choices

Cadre Holdings shows the kind of choice that appears when filtering for both technical quality and fundamental growth speed. Investors wanting to locate other securities that fit this strict pairing of conditions can look at the preset filter High Growth Momentum + Trend Template on ChartMill for an updated list of possible choices.

---

Disclaimer: This article is for information and learning only. It is not advice to buy or sell any security. The examination uses given data and certain filtering methods. All investing has risk, including the possible loss of initial funds. You should do your own study and talk with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.