GUIDEWIRE SOFTWARE INC (NYSE:GWRE) has been identified as a high-growth momentum stock that also aligns with Mark Minervini’s Trend Template criteria. The company, which provides a technology platform for the global Property and Casualty insurance industry, demonstrates strong technical and fundamental characteristics that make it worth a closer look.
Why GWRE Fits the Minervini Trend Template
Minervini’s Trend Template focuses on identifying stocks in strong uptrends with specific technical criteria. GWRE meets these requirements:
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Price Above Key Moving Averages:
- Current price ($237.75) is above the 50-day ($216.29), 150-day ($199.37), and 200-day ($194.49) moving averages.
- The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.
- The 200-day MA is trending upward, reinforcing long-term strength.
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Strong Relative Strength:
- GWRE has a ChartMill Relative Strength (CRS) score of 94.23, meaning it outperforms 94% of all stocks in price performance.
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Price Near 52-Week High:
- The stock is trading within 10% of its 52-week high ($263.20), a key Minervini criterion for momentum.
- It is also 80% above its 52-week low ($132.01), indicating strong recovery and growth potential.
High-Growth Momentum Fundamentals
GWRE’s fundamentals support its high-growth momentum rating:
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Earnings Growth:
- EPS (TTM) growth stands at 67.1%, with quarterly EPS growth surging 238.5% year-over-year.
- The company has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 33.9%.
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Revenue Growth:
- Revenue (TTM) grew 18.6%, with recent quarterly sales growth at 22%.
- Revenue estimates for the next quarter are expected to grow 18.2%.
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Profitability Improvement:
- Profit margins expanded to 15.7% in the latest quarter, up from 3.5% two quarters prior.
- Free cash flow per share surged 444.6% year-over-year, reflecting strong operational efficiency.
Technical Outlook
GWRE’s technical rating of 10/10 highlights its strong uptrend, supported by rising moving averages and high relative strength. However, the setup rating of 3/10 suggests the stock may need a consolidation phase before presenting an optimal entry point.
Key support levels:
- $207.99 (recent horizontal support)
- $170.69 (stronger long-term support)
Resistance is seen near $255.78–$257.38, a zone formed by multiple trendlines.
For a deeper technical breakdown, review the full technical report on GWRE.
Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.
Disclaimer
This is not investment advice. Always conduct your own research and analysis before making investment decisions.
