The search for high-growth stocks often involves a blend of technical and fundamental analysis, a discipline famously systematized by trader Mark Minervini. His approach, encapsulated in the SEPA (Specific Entry Point Analysis) methodology, seeks to identify stocks with explosive potential by ensuring they are in a powerful technical uptrend while being backed by accelerating fundamental growth. This dual-filter process helps separate true market leaders from mere market participants. A practical application of this strategy involves screening for stocks that first pass Minervini's rigorous Trend Template, a set of technical criteria confirming a stock is in a strong, established uptrend, and then layering on fundamental screens for high growth momentum, looking for exceptional earnings and sales expansion.
FTAI AVIATION LTD (NASDAQ:FTAI) presents a strong case study of a security that currently aligns with this combined technical and growth-focused philosophy. The company, which focuses on owning, leasing, and servicing commercial jet engines, has demonstrated a notable price performance that meets the strict requirements for a Minervini-style setup while also showing the fundamental characteristics that attract growth investors.
A Textbook Technical Uptrend
At its core, the Minervini Trend Template is designed to filter for stocks in a clear and powerful Stage 2 advance, avoiding ambiguous or weak trends. FTAI’s current chart exhibits the classic hallmarks of such a trend.
- Price Above Key Moving Averages: The stock's last price of $280.24 trades well above its rising 50-day ($187.94), 150-day ($161.55), and 200-day ($148.42) simple moving averages (SMAs). This alignment is a primary tenet of the template, indicating sustained buying pressure across all major timeframes.
- Moving Average Alignment: The 50-day SMA sits above both the 150-day and 200-day SMAs, and the 150-day is above the 200-day. This "stacked" configuration of shorter-term averages above longer-term ones confirms a strong, orderly uptrend.
- Proximity to Highs: A key Minervini principle is to focus on strength, not cheapness. FTAI is trading within 0.3% of its 52-week high of $281.12, demonstrating leadership and momentum. Furthermore, its current price is approximately 244% above its 52-week low, satisfying the template's requirement of being at least 30% above the low.
- Superior Relative Strength: Perhaps most telling is the stock's ChartMill Relative Strength (CRS) score of 98.01. This means it has outperformed 98% of the market over the past year. Minervini emphasizes that the biggest winners are almost always market leaders, and a high RS score is a direct quantification of that leadership.
This technical picture answers the "which stock" question definitively: FTAI is in a powerful, leading uptrend.
The Fuel of High Growth Momentum
A strong chart is only half the story. The Minervini strategy seeks the "why" behind the price move, which is typically found in accelerating fundamental performance. This is where the High Growth Momentum (HGM) rating becomes critical, as it scans for companies showing exceptional and often improving growth metrics. FTAI’s recent financials reveal the kind of fundamental acceleration that can sustain a major price advance.
- Explosive Earnings Growth: The company's earnings per share (EPS) growth on a trailing twelve-month (TTM) basis is an impressive 63.4%. More importantly, recent quarterly trends show significant acceleration, with EPS growth of 180.6% and 201.9% in the two quarters preceding the most recent one. While the latest quarter's growth moderated to 44.7%, it remains solid.
- Strong Revenue Expansion: Top-line growth provides the foundation. FTAI's TTM revenue growth is nearly 25%, with recent quarterly figures showing powerful surges of 53.7% and 59.5% in prior periods. The most recent quarter saw revenue grow by 43.2%.
- Healthy Profitability: Despite the rapid growth, the company has maintained solid profit margins. The last four reported quarterly profit margins have ranged between 17.1% and 23.9%, indicating the growth is translating effectively to the bottom line.
These metrics illustrate the fundamental catalyst Minervini looks for: a company that is not just growing, but whose growth rate is capturing market attention and, presumably, institutional investment.
Technical Health and Current Setup
According to ChartMill's proprietary analysis, FTAI earns a perfect Technical Rating of 10 out of 10, reflecting its exceptional trend health and market-leading status. The report notes the stock is making new 52-week highs on increased volume, a strong bullish signal. The long-term and short-term trends are both rated as positive.
However, the analysis also provides a crucial note for timing. The Setup Quality rating is currently a 3, indicating that after its powerful run, the stock is extended and not in an immediate consolidation pattern that would offer a low-risk entry point. The summary advises that "it may be a good idea to wait for a consolidation or pullback before considering an entry." This distinction is vital, it confirms the stock's outstanding technical health while objectively stating that the ideal "when to buy" moment, according to classic breakout setup principles, may not be present at this exact price level.
A full breakdown of the support levels, volume analysis, and detailed rating components can be found in the complete ChartMill Technical Report for FTAI.
A Candidate for the Growth-Focused Watchlist
In summary, FTAI Aviation Ltd embodies the profile sought by strategies blending Minervini's trend-following principles with high-growth investing. It meets every criterion of the rigorous Trend Template, confirming a dominant technical uptrend. Simultaneously, its fundamental profile shows the kind of explosive earnings and sales growth that acts as the catalyst for such a price move. While the current extended price action suggests patience for a more optimal entry, the combination of technical leadership and fundamental acceleration makes FTAI a prime candidate for inclusion on a growth investor's watchlist.
For investors seeking other stocks that fit this specific blend of powerful trends and high growth momentum, you can explore the predefined screen used in this analysis: High Growth Momentum + Trend Template Screen.
Disclaimer: This article is for informational and educational purposes only. It is not intended as investment advice, nor does it constitute a recommendation to buy, sell, or hold any security. The analysis is based on current data and methodologies, which are subject to change. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Please read our full disclaimer here.
