Checking if COMPASS INC - CLASS A (NYSE:COMP) meets Minervini’s stock selection rules

Our stock screener has spotted COMPASS INC - CLASS A (NYSE:COMP) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

COMP passes the Minervini Trend Template check!

COMP checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Unpacking COMP's High Growth Momentum Rating

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. COMP has earned a 5:

Earnings Momentum

• In the most recent financial report, COMP reported a 52.94% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• Over the past year, COMP has demonstrated 54.41% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• COMP has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 25.9%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• Accelerating Sales growth for COMP: the current Q2Q growth of 25.9% exceeds the previous quarter Q2Q growth of 11.71%.
• Over the past 3 months, analysts have adjusted their EPS Estimate for COMP with a 35.56% change. This highlights the evolving outlook on the company's EPS potential.
• COMP has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Profitability & Financial Strength

• With positive growth in its operating margin over the past year, COMP showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• The free cash flow (FCF) of COMP has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• A Debt/Equity ratio of 0.06 indicates that COMP is leveraging debt effectively without excessive risk.

Market Strength & Institutional Confidence

• COMP demonstrates a balanced ownership structure, with institutional shareholders at 55.38%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• The Relative Strength (RS) of COMP has consistently been strong, with a current 98.65 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

How does the Setup look for COMP

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for COMP is 7:

Besides having an excellent technical rating, COMP also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. Very recently a Pocket Pivot signal was observed. This is another positive sign.

For an up to date full technical analysis you can check the technical report of COMP

Concluding

It looks like COMPASS INC - CLASS A meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.