Does ENFUSION INC - CLASS A (NYSE:ENFN) meet the Minervini criteria?

In this article we will dive into ENFUSION INC - CLASS A (NYSE:ENFN) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ENFUSION INC - CLASS A showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

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 ENFN:

• ✔ 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)

Understanding ENFN's High Growth Momentum Score

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. ENFN scores a 4 out of 10:

Explosive Earnings Growth

• The quarterly earnings of ENFN have shown a 25.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• ENFN shows accelerating EPS growth: when comparing the current Q2Q growth of 25.0% to the previous quarter Q2Q growth of 25.0%, we see the growth rate improving.
• ENFN has achieved 42.86% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• The q2q revenue growth of 15.24% of ENFN highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.

Financial Strength & Profitability

• ENFN has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• A Debt/Equity ratio of 0.0 suggests that ENFN is managing its debt levels responsibly.

Market Strength & Institutional Confidence

• With institutional shareholders at 94.22%, ENFN demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• ENFN has exhibited strong Relative Strength(RS) in recent periods, with a current 86.41 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How does the Setup look for ENFN

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, ENFN exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, ENFN also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 11.51. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 11.15, a Stop Loss order could be placed below this zone.

Check the latest full technical report of ENFN for a complete technical analysis.

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

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.