Goldman Sachs Group Inc (NYSE:GS) Shows High Growth Momentum and Technical Strength

In growth investing, mixing a strict technical system with attention to fundamental momentum can be a strong method for spotting possible leaders. A specific method is the Mark Minervini plan, which joins his own Trend Template with a detailed look into earnings and sales speed. The aim is to locate stocks that are both in solid, clear uptrends and supported by firms showing very fast fundamental growth. This two-part method tries to catch stocks in the beginning or middle parts of a large price rise, where the combination of good price movement and better business numbers can point to notable possibility.

The Goldman Sachs Group Inc (NYSE:GS) recently appeared from a scan made to find such chances. The scan uses Minervini's Trend Template to sort for charts that are technically sound and adds a "High Growth Momentum" score to make sure the firm's financial path supports the price strength. Goldman Sachs seems to fit the strict needs of both filters, offering an example of how a long-standing financial leader can show the traits usually looked for in fast-growth momentum situations.

Looking at the Technical Base: The Minervini Trend Template

Mark Minervini's Trend Template is a list of technical requirements made to spot stocks in a clear Stage 2 uptrend. It goes past simple trend watching, asking for exact arrangements of moving averages and price points that show continued institutional buying and momentum. For a stock like Goldman Sachs, fitting these needs is the first important step.

A look at the given data shows GS meets the main technical points:

• Trend Arrangement: The stock's price is higher than all its main moving averages (50-day, 150-day, and 200-day), and these averages are in a positive order, the 50-day is above the 150-day, which is above the 200-day. This ordered, rising pattern is a sign of a good, speeding uptrend.
• Nearness to Highs: GS is trading within 3% of its 52-week high, meeting the template's need for a stock to be within 25% of its high. This shows the stock is displaying strength, not bouncing back from a large drop.
• Solid Relative Performance: With a ChartMill Relative Strength (CRS) score of almost 90, GS is doing better than about 90% of the whole market. High relative strength is a central part of the Minervini method, as it spots market leaders that often keep leading.

This technical view indicates Goldman Sachs is not just joining a wide market rise but is showing its own strength, a main idea of the plan. The solid trend gives a good setting for the stock, while the high relative strength shows it is a leader in its field.

Checking the Growth Driver: High Growth Momentum Numbers

While a good chart is necessary, the Minervini plan gives similar importance to the fundamental cause, specifically, speeding growth in earnings and sales. The "High Growth Momentum" filter concentrates on these changes. The given data for Goldman Sachs shows several positive growth signs that support its inclusion.

• Earnings Strength and Speed: The firm's Trailing Twelve Month (TTM) EPS is $49.23, showing a year-over-year growth of more than 44%. More notably, there is proof of speeding up. The latest quarterly EPS grew almost 46% year-over-year, a rate that is faster than the growth rates of the two previous quarters. This pattern of speeding earnings growth is a strong draw for institutional money.
• Estimate Changes: Analysts are growing more positive. The average estimate for next year's EPS has been moved up by over 4.6% in the last three months. Positive estimate changes often come before more price gains as the market adapts to better future outlooks.
• Steady Delivery: Goldman Sachs has surpassed EPS estimates in all of the last four quarters, with an average beat of nearly 18%. This steady record of beating expectations builds trust and can be a reason for multiple growth.
• Strong Cash Flow: The firm's free cash flow per share has jumped, showing 179% growth over the past year. Solid and growing cash flow gives financial room and is a main sign of business health beyond reported earnings.

These fundamental parts give the "reason" behind the good chart. In the Minervini system, excellent technicals are often a sign of excellent fundamentals becoming visible. The earnings speed and positive changes suggest the firm is in a good operational phase, which is being seen and valued by the market.

Technical Condition and Setup Overview

The given technical study report gives a combined view of GS's chart condition. It gives the stock a full technical score of 10 out of 10, stating both its short-term and long-term trends are positive. The report also points out a good setup score of 7, showing the stock is settling near its highs in a possible "bull flag" shape, a break that may come before the next rise. The study notes several support areas below the current price, which can help set risk levels, and mentions a recent "pocket pivot" signal, a volume-based sign often linked to institutional buying.

For a full look at the support levels, trend study, and automatic trade setup ideas, you can see the complete ChartMill Technical Report for GS.

Locating Like Chances

Goldman Sachs shows the kind of security this mixed scanning method intends to find: a leader in a solid trend, supported by speeding fundamentals. For investors wanting to use this method to locate other possible picks, the ready-made scan is available to use.

You can locate more results using this "High Growth Momentum + Trend Template" scan here.

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Disclaimer: This article is for information and learning only. It is not advice to buy or sell any security. The study is based on given data and ready-made scanning needs. Investors should do their own full research, think about their personal money situation and risk comfort, and talk with a skilled financial advisor before making any investment choices. Past results do not show future outcomes.