CLEANSPARK INC (NASDAQ:CLSK) Combines Technical Strength and High Growth Momentum

A systematic method for finding high-potential growth stocks joins careful technical study with fundamental momentum screening. The process used in this case brings together Mark Minervini's Trend Template, which sorts for stocks showing strong and steady uptrends, with a High Growth Momentum (HGM) rating to confirm that basic business results support the price movement. This two-part method aims to find companies that are both technically healthy and showing faster operational growth, a pairing frequently seen in market leaders.

Technical Strength and the Trend Template

CLEANSPARK INC (NASDAQ:CLSK) shows a strong technical profile that matches the requirements of the Minervini Trend Template. This template is made to find stocks in a clear Stage 2 advance, marked by a potent and continuing uptrend. The force of CLSK's trend is clear across several time periods.

• Price Above Key Moving Averages: The stock is trading well above its rising 50-day, 150-day, and 200-day simple moving averages (SMAs). This setup confirms positive alignment across short, intermediate, and long-term trends.
• Moving Average Alignment: The 50-day SMA ($11.86) is situated above both the 150-day SMA ($10.27) and the 200-day SMA ($10.21), and the 150-day SMA also trades above the 200-day SMA. This ordered, rising setup is a standard sign of a solid uptrend and a central part of the Trend Template, showing steady buying interest.
• Proximity to Highs: With a current price of $19.28, CLSK is trading within 15% of its 52-week high of $22.12. The Trend Template notes that stocks close to their highs often have the force to keep rising, as they are not held back by overhead supply from investors wanting to sell at their purchase price.
• Superior Relative Strength: A ChartMill Relative Strength (CRS) score of 94.89 shows that CLSK is doing better than almost 95% of all stocks in the market. Minervini's method gives great weight to relative strength, as it shows a stock is a market leader, drawing institutional money even when the wider market is soft.

Fundamental Momentum for High Growth

Beyond a clean chart, CLEANSPARK shows the fast fundamental growth that High Growth Momentum investors look for. The company's recent financial results display clear speed-up in important measures.

• Earnings Acceleration: The latest quarterly EPS grew by an exceptional 485% compared to the same quarter last year. This comes after a huge 1,775% growth in the previous quarter. This kind of sharp earnings increase is a main force behind strong performance, as "big earnings attract big attention" from institutional investors.
• Solid Revenue Growth: Top-line growth is also notable, with the last quarter showing a 90.8% year-over-year rise. This shows that the company's main business is getting bigger quickly, not just gaining from temporary cost savings or financial adjustments.
• Positive Analyst Revisions: The average analyst estimate for next year's EPS has been moved up by 94.95% over the past three months. This is a key sign in growth investing, as upward revisions often come before more price gains as the market adapts to the better forecast.
• Strong Profitability: The company reported a profit margin of 126.75% in the last quarter, highlighting its skill in turning revenue into earnings effectively. While this number is very high and should be watched for consistency, it currently indicates very profitable activities.

Technical Analysis Overview

The technical report for CLEANSPARK gives a top rating of 10 out of 10, reflecting its outstanding technical condition. The long-term and short-term trends are both rated as positive, and the stock is trading near a 52-week high. While the report mentions that the stock's recent unsteady price movement leads to a lower setup quality rating, hinting it may be overbought in the short term, the basic technical structure stays very healthy. For a full and itemized look at the technical view, you can see the full technical analysis report for CLSK.

Finding Similar Opportunities

CLEANSPARK acts as a leading example of a stock that fits the strict requirements of both a forceful trend and high fundamental growth. For investors looking to find similar possible chances, this method can be used in a planned way. A preset screen that selects for stocks following the Minervini Trend Template while also having a high growth momentum rating can effectively focus the search. You can look at current results from this screening method by visiting the High Growth Momentum + Trend Template screen on ChartMill.

Disclaimer: This is not investment advice. The content is intended to be used for informational and educational purposes only. It is crucial to conduct your own research and consider your financial situation and risk tolerance before making any investment decisions.