In the effort to find stocks with high growth potential, many investors use organized methods that join detailed chart study with basic business momentum. One well-known method is the plan made famous by Mark Minervini, which centers on locating stocks in strong upward moves that also have improving company foundations. This plan is not for locating low-priced stocks, but instead for finding market leaders early in their large price gains. A central instrument in this structure is the Minervini Trend Template, a group of chart rules made to confirm a stock is in a clear, lasting upward move. To better focus the hunt for notable chances, this chart filter can be joined with an emphasis on strong business momentum, looking for firms that are not only moving well on charts but are also showing better profit and sales increases than similar companies. This joined view tries to separate securities that have both the chart momentum and the basic reason for more growth.
GLAUKOS CORP (NYSE:GKOS) comes forward as a candidate that deserves more study through this two-part view. The company, an eye medical technology and drug firm centered on new treatments for glaucoma and cornea conditions, seems to fit many of the strict rules set in the Minervini Trend Template, pointing to a positive chart setting.
Checking the Trend Template Fit
The Minervini Trend Template is made on a base of particular moving average arrangements and price movement traits that together show a stock is in a solid, institution-led upward move. For a stock to pass, it must meet several conditions about its place compared to important moving averages and its nearness to new peaks. Using the given information, Glaukos Corp shows a fit with many of these important chart measures:
- Price Over Important Averages: The stock's last price of $112.77 trades over its 150-day moving average ($101.34) and its 200-day moving average ($99.93). This is a basic need, showing the long-term move is positive.
- Moving Average Arrangement: The 50-day moving average ($112.12) is placed over both the 150-day and 200-day averages. Also, the 150-day average is over the 200-day average. This order of shorter-term averages over longer-term ones is a standard sign of a sound, set upward move.
- Nearness to Peaks: A central idea of the Minervini view is to concentrate on strength, not low points. GKOS's present price is about 54% over its 52-week low of $73.16, showing major recovery and momentum. While it is not inside the exact 25% of its 52-week peak ($130.23), its place far from the lows still shows a large upward path.
- Relative Strength: The stock's ChartMill Relative Strength (CRS) score of 72.71 shows it has done better than about 73% of the whole market in terms of price action over the past year. Minervini stresses putting money in market leaders, and a growing or high relative strength score is a central sign of such leadership.
These points together indicate that GKOS is working inside what Minervini would call a "Stage 2" climb,a time of continued upward move,which is the main stage where his plan aims to invest.
Studying Strong Business Momentum
The chart view is only one part of the story. The Minervini plan greatly values basic business improvement, stating that the largest stock gains are nearly always backed by solid and getting better profit and sales increases. This is where the "High Growth Momentum" part becomes relevant. The given basic data for Glaukos shows several areas of clear momentum:
- Strong Sales Growth: The company is showing notable top-line growth. Year-over-year sales growth for the last reported quarter was 35.7%, and the trailing twelve-month (TTM) sales growth is at 32.3%. This steady, high-rate sales increase is a primary sign of market share gains and business action.
- Profit Path: While the company is not yet regularly profitable on a net income basis (EPS TTM is -$0.90), the direction in its bottom-line results shows clear betterment. Earnings per share growth on a TTM basis is given as 52.6%, and the recent quarterly EPS growth numbers are strongly positive (30.0%, 42.9%, 53.8% over the last three quarters). This pattern of major loss reduction,or speed toward profit,is a strong basic reason that can draw investor focus.
- Estimate Changes: The data shows a 0.24% upward change in the average analyst sales estimate for the next year over the past three months. While small, positive changes can signal growing analyst belief in the company's growth story. It is important, however, that next-year EPS estimates have been changed down notably, which may reflect spending phase costs or other points that need watching.
For an investor focused on growth, this mix of fast sales growth and a quickly bettering profit trend is key. It gives the basic reason for the stock's chart strength, suggesting the price movement is backed by real business momentum.
Chart Condition and Setup Overview
A look at the given chart study report gives a fair, current review of GKOS's chart condition. The report gives the stock a chart score of 5 out of 10, calling its overall chart condition average. The long and short-term moves are both called neutral. On the positive side, the report agrees with the stock's relative strength, noting it does better than 72% of the market and 83% of its health care equipment peers. It also sees the stock is trading near the top of its recent one-month range.
However, the report's setup quality score is a low 3, showing that from a strict pattern view, the stock does not now give a high-quality, low-risk entry point. The summary says that "price movement has been a little bit too volatile to find a nice entry and exit point" and proposes waiting for a period of less movement. This is a key practical point for a trader; while the stock may fit many trend template rules, the best Minervini entry often comes after a volatility squeeze pattern (VCP), giving a exact turning point. Investors interested in the long-term growth story might see moves down to support areas (noted in the report at ~$100.31-$100.37 and ~$97.02) as possible zones of interest, while strict followers of the plan may wait for a more clear setup to appear.
For a full list of the support and resistance points and the complete chart study, you can see the full ChartMill Technical Report for GKOS.
Closing Thoughts
Glaukos Corp offers a notable case for investors using a growth-and-trend plan. The stock fits with several parts of the Minervini Trend Template, trading over key moving averages with a positive order and showing solid relative performance. Basically, it shows the type of high-growth momentum,especially in sales speed and a fast bettering profit trend,that aims to support and drive more chart strength. While the present chart setup is not seen as perfect for a exact, low-risk entry according to the TA report, the base moves in both price and company basics indicate GKOS is a name that should be on the watchlist of growth-focused investors. As with any plan, discipline is central; possible investors should do their own complete study and think about their risk level and entry timing.
Interested in finding other stocks that now fit this High Growth Momentum + Trend Template filter? You can see the full, current screening results here.
Note: This article is for information and learning only. It is not meant as investment guidance, nor does it form a suggestion to buy, sell, or keep any security. The study is based on given data and certain methods, but market states shift fast. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.