Evaluating EQT CORP (NYSE:EQT) using Mark Minervini’s winning stock formula

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if EQT CORP (NYSE:EQT) is suited for growth investing. Investors should of course do their own research, but we spotted EQT CORP showing up in our Minervini growth screen, so it may be worth spending some more time on it.

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 EQT:

• ✔ 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)

ChartMill's Evaluation of Growth

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. EQT has achieved a 5 out of 10:

Explosive Earnings Growth

• In the most recent financial report, EQT reported a 43.9% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• EQT shows accelerating EPS growth: when comparing the current Q2Q growth of 43.9% to the previous quarter Q2Q growth of 43.75%, we see the growth rate improving.
• EPS acceleration happened 2 quarters in a row.
• EQT has achieved 33.57% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• EQT has achieved significant quarter-to-quarter (Q2Q) revenue growth of 25.14%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• The sales growth of EQT is accelerating: the current Q2Q growth of 25.14% is above the previous quarter Q2Q growth of -20.47%. Sales momentum and acceleration are key for high growth systems.
• With a track record of beating EPS estimates in the last 4 quarters, EQT showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• With a current Debt-to-Equity ratio at 0.39, EQT showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.

Market Strength

• EQT has exhibited strong Relative Strength(RS) in recent periods, with a current 88.08 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How do we evaluate the setup for EQT?

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for EQT is 7:

EQT has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 53.69. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 50.47, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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

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More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

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.