COMMSCOPE HOLDING CO INC (NASDAQ:COMM) Fits the Minervini Growth Momentum and Trend Template

For investors looking to join strong growth with defined technical entries, the method created by Mark Minervini offers a useful structure. This process, frequently called the SEPA (Specific Entry Point Analysis) strategy, depends on finding stocks that are both in strong, confirmed uptrends and supported by fundamentally improving business results. The aim is to find market leaders early in their large price gains by using a precise "Trend Template" for technical condition and searching for notable earnings and sales momentum. This two-part study seeks to distinguish real, lasting breakouts from temporary increases.

CommScope Holding Co Inc (NASDAQ:COMM) recently appeared through a search made to locate such high-momentum growth stocks that also meet Minervini's strict technical requirements. We will look at how this communications infrastructure company compares to the standards that mark a possible leading candidate.

Reviewing the Technical Trend: The Minervini Template

The foundation of the Minervini strategy is the Trend Template, a group of fixed technical rules that verify a stock is in a confirmed, long-term uptrend (Stage 2). COMM seems to satisfy these important measures, which are intended to keep investors in line with the current momentum and steer clear of declining stocks.

• Price Above Important Moving Averages: COMM's last price of $18.26 trades well above its rising 50-day ($17.60), 150-day ($13.60), and 200-day ($11.38) simple moving averages (SMAs). This order is a main rule, showing continued buying interest across all major time periods.
• Moving Average Order: The template requires a positive sequence, where the shorter-term averages are above the longer-term ones. COMM meets this with its 50-day SMA above both the 150-day and 200-day SMAs, and the 150-day SMA above the 200-day SMA. This formation confirms the trend's force and speed.
• Nearness to Highs: A stock must show force by trading close to its highest point. COMM's price is within 25% of its 52-week high of $20.55, and notably, it sits a significant 521% above its 52-week low of $2.94. This large rise from the lows is a characteristic of the strong recovery trends Minervini looks for.
• Better Relative Strength: Maybe most revealing is COMM's excellent relative strength (RS) ranking of 98.19. This means it has done better than about 98% of all stocks in the market over the past year. Minervini notes that real market leaders consistently do better than the wider market, and an RS rank above 70 (preferably in the 80s or 90s) is an important filter.

Reviewing the Growth Driver: Fundamental Momentum

While a good chart is necessary, Minervini points out that the largest winners are nearly always backed by strong fundamental improvement. The "High Growth Momentum" part of the search looks for exactly this, companies where earnings and sales growth are not only positive, but improving greatly. COMM's recent financial numbers show a company in the middle of a major operational recovery.

• Very High Earnings Growth: The year-over-year earnings growth numbers are notable. The latest quarter showed a gain of 1,340% compared to the same time last year. While such a high number can be affected by a small starting point, the direction is supported by good growth in the earlier quarters too. This jump is a typical event that draws institutional interest.
• Positive Estimate Changes: Analysts are paying attention. The average estimate for COMM's earnings next year has been increased by 27.9% over the last three months. Minervini notes upward changes as an important sign of rising belief in a company's future, often coming before more price gains.
• Sales Momentum: Revenue growth has also turned clearly positive, with the last quarter up 50.6% year-over-year. Also, future revenue estimates have been increased by 6.5%. This pairing of growing top-line growth and bottom-line improvement is what supports lasting high-momentum moves.
• Steady Results: COMM has exceeded earnings per share (EPS) estimates in all of the last four quarters, with an average exceedance of 208%. This record of beating expectations builds trust with investors and can establish a cycle of positive earnings surprises.

Technical Position and Risk Points

According to ChartMill's own study, COMM currently shows a positive technical position. The stock receives a high Technical Rating of 9 out of 10, reflecting its good trend condition. Its Setup Rating of 8 implies the price is settling in a fairly narrow band after its earlier rise, which may come before a new breakout.

The technical report finds a close support area between $18.13 and $18.25, which could act as a reasonable place for a protective stop-loss order. The study states that while the long-term trend stays positive, the short-term trend has become neutral, and the stock is trading near the bottom of its recent one-month range. This shows a time of consolidation, which is ordinary within a larger uptrend but needs a clear plan for entry and risk control.

You can examine the complete, detailed technical study for COMM here: ChartMill Technical Report.

Locating Comparable Possibilities

COMM shows the kind of candidate that appears when searching for stocks that mix Minervini's trend rules with high-growth fundamental strength. For investors wanting to find other securities that meet this particular mix of standards, the search method that found COMM can be a beginning for more investigation.

Find more possible high-growth momentum stocks that match the Minervini Trend Template by using this set search: High Growth Momentum + Trend Template Screen.

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Disclaimer: This article is for informational and educational purposes only. It is not a recommendation to buy or sell any security. The analysis is based on data provided and search methods described. All investing involves risk, including the potential loss of principal. You should conduct your own thorough research and consider consulting with a qualified financial advisor before making any investment decisions.