The method used to find possible investment choices joins a strict technical structure with attention to fundamental growth momentum. This process is guided by the strategies of well-known trader Mark Minervini, whose Trend Template offers an organized list for finding stocks in established, strong uptrends. By sorting for securities that fit these exact technical standards, such as trading above important moving averages and showing solid relative strength, the screen makes sure choices are already in a positive "Stage 2" rise. This is then combined with a search for High Growth Momentum (HGM), which assesses a company's earnings and sales speed, estimate changes, and profit patterns. The aim is to locate companies where outstanding business results are being acknowledged and increased by the market, forming a possible combination of firm price movement and basic fundamental health.
JFROG LTD (NASDAQ:FROG) appears as a stock that meets both the technical rules of the Trend Template and the strict standards of high-growth investing.
A Clear Technical Picture
A look at JFrog's chart and technical information shows a strong match with Minervini's Trend Template, which is made to sort for stocks displaying definite leadership and momentum.
- Price Above Key Moving Averages: The stock's last price of $66.81 rests well above its rising 50-day ($58.07), 150-day ($49.18), and 200-day ($45.47) simple moving averages (SMAs). This ordered position, with the shorter-term averages above the longer-term ones, is a standard sign of a continued uptrend.
- Strong Relative Strength: With a ChartMill Relative Strength (CRS) score of 95.96, JFrog is doing better than about 96% of all stocks. Minervini notes that real market leaders regularly display high relative strength, as it shows institutional interest and better performance despite wider market changes.
- Proximity to Highs: The stock is now trading within 5% of its 52-week high of $70.43 and is 147% above its 52-week low of $27.00. The Trend Template favors stocks close to new highs, working on the idea that strength often leads to more strength, instead of trying to find a low point.
This technical view indicates JFrog is in a definite, long-term uptrend with firm momentum, exactly the sort of situation the Minervini method aims to use.
Fundamentals Supporting the Momentum
The technical health is supported by a fundamental picture that fits the "High Growth Momentum" label. The company's financial numbers show the sort of speeding performance that often draws continued investor attention.
- Firm Earnings Growth: JFrog shows notable and speeding profitability. Earnings per share (EPS) grew 21.5% over the trailing twelve months (TTM). More importantly, recent quarterly growth has sped up clearly, with the last quarter showing year-over-year EPS growth of 46.7%. The company has also exceeded analyst EPS estimates in each of the last four quarters by an average of over 23%.
- Steady Revenue Growth: Top-line growth remains firm and stable. Revenue grew 22.7% over the TTM period, with the last quarter speeding to 25.5% growth. This steadiness across several quarters points to solid execution and market need for its DevOps platform.
- Positive Analyst Outlook: The view from analysts is getting better, a main idea of momentum investing. Over the past three months, the average estimate for next year's EPS has been moved up by 13.4%, showing increasing belief in the company's future profitability. In the same way, revenue estimates for next year have been raised by 3.0%.
- Firm Cash Production: The company's free cash flow per share has risen greatly, growing by over 202% in the past year to $1.19. This major gain in cash production is a key sign of business quality and financial soundness, offering support for more growth or shareholder benefits.
Technical Condition and Position Summary
ChartMill's own technical study supports the positive case. The platform gives JFrog a high Technical Rating of 10 out of 10, showing very good health across trend, momentum, and relative strength measures. Also, it gets a solid Setup Rating of 8, meaning the stock is now settling within its uptrend in a way that may offer a formed chance. The study notes lower volatility and a recent "Pocket Pivot" signal, a volume-based measure often linked to institutional buying without a large price jump.
For a complete look at the support and resistance points, and the exact trade position details made by this study, you can see the full ChartMill Technical Report for FROG.
Finding Like Chances
JFrog shows the sort of choice that comes up when looking for companies with both strong price trends and speeding fundamental growth. Investors curious about using this joined screen of the Minervini Trend Template and High Growth Momentum filters can examine the set scan to find other possible choices. You can find more results from this "High Growth Momentum + Trend Template" screen here.
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 current data and methods, which are subject to change. All investing involves risk, including the potential loss of principal. Always conduct your own research and consider your financial situation and risk tolerance before making any investment decisions. Please read our full disclaimer here.
