GILAT SATELLITE NETWORKS LTD (NASDAQ:GILT) Fits Mark Minervini's Momentum Strategy with Strong Technical and Fundamental Growth

GILAT SATELLITE NETWORKS LTD (NASDAQ:GILT) has recently been identified by a screening process made to find stocks that fit Mark Minervini’s momentum-based growth strategy. This method uses strict technical criteria from Minervini’s Trend Template with fundamental growth measurements to find equities showing solid uptrends and improving business performance. The strategy focuses on stocks in clear Stage 2 advances, showing price strength, upward moving averages, and high relative strength, while also needing solid earnings, sales growth, and positive revisions to confirm fundamental health.

Meeting the Minervini Trend Template

GILT meets all main technical conditions of the Trend Template, which is necessary for confirming a stock is in a lasting uptrend. The current price of $9.41 trades well above its 150-day moving average ($7.05) and 200-day moving average ($6.79), with both averages moving upward, a sign of improving long-term momentum. The 50-day moving average ($8.04) also sits above the longer-term averages, showing aligned positive momentum across timeframes. Also, the stock is trading 119% above its 52-week low of $4.30 and within 7% of its 52-week high of $10.09, showing solid recovery and nearness to new highs. With a relative strength ranking of 95.96, GILT performs better than almost 96% of all stocks, highlighting its market leadership.

These technical features are important because they help remove unstable or falling stocks, concentrating only on those with confirmed strength and momentum, central ideas in Minervini’s method for capturing major price advances.

Fundamental Growth and Momentum

Beyond technicals, GILT shows notable fundamental growth, important for high-growth investors looking for companies with better business dynamics. Earnings per share (EPS) growth is especially significant: TTM EPS increased 22.86% year-over-year, and last quarter’s EPS grew by 950% compared to the same quarter last year. Although quarterly results show some changes, the overall trend in profitability is supported by a 19.67% increase in TTM revenue and a 36.98% rise in sales last quarter.

The company has exceeded EPS estimates in three of the last four quarters, with an average surprise of 44.33%, showing steady outperformance. Analyst sentiment is also positive, with next-year EPS estimates adjusted upward by 11.57% over the past three months. Profit margins have shown gains, and free cash flow per share increased 43.09% over the past year, offering financial flexibility and operational health.

These components are key parts of Minervini’s SEPA methodology, which looks for stocks with strong earnings acceleration, positive estimate revisions, and solid revenue trends, factors that often draw institutional interest and lead to more price appreciation.

Technical and Setup Assessment

According to ChartMill’s technical analysis report, GILT has a perfect technical rating of 10, showing very good trend health, solid relative performance, and alignment across moving averages. The long-term and short-term trends are both positive, and the stock is trading near the top of its 52-week range. However, the setup rating is moderate (4), meaning that while the stock is technically healthy, recent price movement may need patience for a good entry point. Support levels are found between $9.31,$9.40 and near $8.57, which could be possible areas for risk management.

Read the full technical report for GILT here.

Conclusion

GILAT SATELLITE NETWORKS LTD presents a notable case for momentum and growth-focused investors, mixing solid technical strength with improving fundamental performance. It fits closely with the Minervini strategy, displaying a solid uptrend, high relative strength, and important earnings and sales growth. While the consolidation setup may call for careful entry timing, the overall profile indicates possibility for continued outperformance.

For investors interested in finding similar high-growth momentum candidates that meet the Minervini Trend Template criteria, more screening results can be found via this High Growth Momentum + Trend Template screen.

Disclaimer: This is not investment advice. This analysis is for informational and educational purposes only. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.