How does CASELLA WASTE SYSTEMS INC-A (NASDAQ:CWST) stack up against Mark Minervini’s strategy?

Our stock screener has spotted CASELLA WASTE SYSTEMS INC-A (NASDAQ:CWST) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for CWST:

• ✔ 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)

Growth Examination for CWST

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. CWST boasts a 5 out of 10:

Earnings Momentum

• The EPS of CWST has exhibited growth from one quarter to another (Q2Q), with a 215.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• CWST shows accelerating EPS growth: when comparing the current Q2Q growth of 215.0% to the previous quarter Q2Q growth of -22.86%, we see the growth rate improving.
• EPS growth accelerated for 3 quarters in a row.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 18.89%, CWST showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• CWST shows accelerating Sales growth: when comparing the current Q2Q growth of 18.89% to the previous quarter Q2Q growth of 16.71%, we see the growth rate improving.
• CWST has demonstrated strong 1-year revenue growth of 23.16%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• Analysts' average next Quarter EPS Estimate for CWST has witnessed a 64.0% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.

Profitability & Financial Strength

• With a Debt-to-Equity ratio at 0.7, CWST showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.

Strong Market Performance

• The Relative Strength (RS) of CWST has consistently been strong, with a current 86.99 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Why is CWST a setup?

ChartMill also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, CWST exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, CWST also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 113.21. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 111.20, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our latest full technical report of CWST contains the most current technical analsysis.

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Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.