GUIDEWIRE SOFTWARE INC (NYSE:GWRE) – A Strong Contender in High-Growth Momentum and Minervini’s Trend Template

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:

• 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.

• Strong Relative Strength:

  • GWRE has a ChartMill Relative Strength (CRS) score of 94.23, meaning it outperforms 94% of all stocks in price performance.

• 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:

• 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%.

• 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%.

• 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.