GILAT SATELLITE NETWORKS LTD (NASDAQ:GILT) Fits the Minervini Trend Template as a High-Growth Momentum Stock

Identifying High-Growth Momentum Stocks Using the Minervini Trend Template

Mark Minervini’s Trend Template is a methodical way to find stocks in strong uptrends by analyzing price movement, moving averages, and relative strength. The approach targets stocks showing steady momentum, ensuring they meet specific technical standards before selection. Pairing this with a high-growth momentum (HGM) filter helps investors locate companies not only in solid technical positions but also displaying faster earnings and revenue growth, important factors for long-term success.

One stock currently fitting these conditions is GILAT SATELLITE NETWORKS LTD (NASDAQ:GILT). Here, we explore why GILT aligns with the Minervini strategy and why it might interest high-growth investors.

Why GILT Fits the Minervini Trend Template

The Minervini Trend Template demands stocks to fulfill eight key technical conditions, confirming they are in a clear uptrend. GILT meets these requirements:

1. Price Above Key Moving Averages

   • Current price ($8.79) is higher than the 50-day SMA ($7.09), 150-day SMA ($6.79), and 200-day SMA ($6.49).
   • The 50-day SMA is above the 150-day and 200-day SMAs, showing bullish alignment.

2. Upward-Sloping Moving Averages

   • The 150-day and 200-day SMAs are rising, indicating long-term strength.

3. Strong Price Performance

   • The stock is 87% above its 52-week low ($4.30) and within 6.5% of its 52-week high ($9.40), reflecting steady upward movement.

4. High Relative Strength

   • GILT’s relative strength (CRS) of 93.47 means it beats 93% of all stocks, a sign of market leadership.

These points match Minervini’s focus on trading stocks in Stage 2 (uptrend) while avoiding weaker or consolidating stocks.

High-Growth Momentum Fundamentals

Beyond technical strength, GILT shows faster growth metrics, making it appealing for momentum investors:

• Earnings Growth

  • EPS (TTM) is $0.43, with 950% YoY quarterly EPS growth in the latest quarter.
  • While past quarters were uneven, the recent surge suggests better profitability.

• Revenue Expansion

  • Revenue rose 36.98% YoY last quarter, with full-year revenue growth at 14.79%.
  • Future estimates predict 53.77% sales growth next quarter, pointing to strong demand.

• Free Cash Flow Growth

  • Free cash flow per share grew 25.6% YoY, showing improved efficiency.

These fundamentals support the High Growth Momentum (HGM) rating, which looks for companies with faster earnings and revenue trends—a key part of Minervini’s SEPA (Specific Entry Point Analysis) method.

Technical Summary: Strong Trend, Awaiting Better Entry

ChartMill’s technical report gives GILT a perfect 10/10 rating, noting:

• A steady uptrend across short and long-term periods.
• Better performance than 93% of stocks and 74% of its industry peers (Communications Equipment).
• High volume backing recent price gains, suggesting institutional interest.

However, the setup quality is rated 3/10, indicating the stock may be overbought after its recent rise. Investors might wait for a pullback or pause to improve risk/reward.

View the full technical analysis here.

Finding Similar High-Growth Momentum Stocks

GILT was found using a High Growth Momentum + Trend Template screen, which blends Minervini’s technical standards with faster growth metrics. For investors looking for similar opportunities, this screen can be useful:

Explore more high-growth momentum stocks here.

Conclusion

GILT is a stock that fits both Minervini’s Trend Template and high-growth momentum standards. Its strong technicals, along with better fundamentals, make it an interesting candidate for further review. However, given its recent price climb, investors might benefit from waiting for a more favorable entry point.

As always, careful research—including reviewing earnings reports, sector trends, and broader market conditions—is crucial before making investment choices.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult a financial advisor before investing. Read our full disclaimer here.