Does GENIUS SPORTS LTD (NYSE:GENI) align with Mark Minervini’s trading strategy?

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

GENI passes the Minervini Trend Template check!

GENI checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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)

Why we can consider GENI a High Growth Stock.

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. GENI was assigned a score of 5 for growth:

Earnings Momentum

• The recent financial report of GENI demonstrates a 72.73% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• Accelerating EPS growth for GENI: the current Q2Q growth of 72.73% exceeds the previous quarter Q2Q growth of 0.0%.
• The 1-year EPS growth of GENI (44.12%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The quarter-to-quarter (Q2Q) revenue growth of 20.27% of GENI has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• The 1-year revenue growth of GENI (23.71%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• Over the past 3 months, analysts have adjusted their EPS Estimate for GENI with a 28.17% change. This highlights the evolving outlook on the company's EPS potential.

Profitability & Financial Strength

• With positive growth in its operating margin over the past year, GENI showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• GENI has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• With a Debt/Equity ratio of 0.0, GENI demonstrates prudent financial management.

Market Strength & Institutional Confidence

• With 83.21% of the total shares held by institutional investors, GENI showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• GENI has exhibited strong Relative Strength(RS) in recent periods, with a current 96.83 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Why is GENI a setup?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, GENI has a 3 as its setup rating:

Although GENI has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

Final Thoughts

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

Keep in mind

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.