Hamilton Insurance Group Ltd. (NYSE:HG) Meets Mark Minervini's High-Growth Momentum Criteria

Hamilton Insurance Group Ltd. (NYSE:HG) has recently appeared on a specific screen made to find stocks that match Mark Minervini's high-growth momentum strategy. This method uses strict technical rules, called the Trend Template, with an emphasis on companies showing solid fundamental growth traits. The aim is to find securities that are in strong uptrends and are also backed by improving business fundamentals, which may lead to notable price increases.

Meeting the Minervini Trend Template

A central part of Mark Minervini's method is trading with the main trend. His Trend Template gives a step-by-step list to confirm a stock is in a definite Stage 2 advance, steering clear of stocks that are basing or falling. Hamilton Insurance Group shows a strong technical picture by meeting these important points:

• Price Above Key Moving Averages: The stock is trading significantly above its rising 50-day, 150-day, and 200-day simple moving averages. This positioning shows consistent buying interest across short, medium, and long-term periods.
• Strong Momentum and Proximity to Highs: The current price is about 78% above its 52-week low and is trading within 3% of its 52-week high. Stocks close to new highs frequently have the momentum to keep rising, a situation Minervini calls "the path of least resistance."
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) rating of almost 80, HG is performing better than most of the market. Minervini points out that real market leaders will show high relative strength, often breaking out ahead of the main market indices.

This solid technical base indicates the stock is being accumulated and is a leading name in its sector, a main goal of the Trend Template.

High Growth Momentum Fundamentals

While a good chart is necessary, Minervini's strategy demands that technical strength be confirmed by basic fundamental growth. The "High Growth Momentum" part of the screen looks for companies displaying quick growth in earnings and sales. Hamilton Insurance Group shows a number of positive fundamental features:

• Notable Earnings Revisions: One of the most significant signals is the major upward revision in analyst estimates. The average EPS estimate for the next fiscal year has been revised upward by more than 32% in the last three months. Such positive revisions can draw institutional attention, as they point to better future potential.
• Strong Quarterly Sales Growth: The company has shown high top-line growth, with sales in the latest quarter increasing almost 26% versus the same quarter a year ago. Steady revenue growth is a main sign of demand for a company's products or services.
• Good Profitability: The profit margin for the last reported quarter was a sound 25.1%, showing a major gain from the prior quarter. Growing margins can be a signal of operational effectiveness and pricing ability.
• High Free Cash Flow Generation: The company's free cash flow per share has grown very quickly over the past year, rising by more than 434%. High and increasing free cash flow gives a company financial room to invest in growth, reduce debt, or give capital back to shareholders.

These fundamental measures fit with the strategy's aim of finding companies going through a fundamental "catalyst" that can fuel continued strong performance.

Technical Structure and Setup

Besides meeting the basic Trend Template, the stock's present chart structure shows a possible opportunity. According to the technical analysis report, HG has a very high technical rating of 10 and a good setup rating of 8. The stock is moving sideways within a set range after a strong upward move, a formation that can sometimes come before a new upward phase.

• The analysis points to lower volatility during this sideways phase, which can signal a balance between supply and demand.
• A definite support area has been found below the current price, giving a sensible level for a protective stop-loss order, a key part of risk management in the Minervini strategy.

This mix of a high technical rating and a positive setup indicates the stock is not only in good health but might be set for its next breakout. For a complete look at the support and resistance levels, you can see the full technical analysis report for HG.

Summary

Hamilton Insurance Group Ltd. presents a strong case for investors using a high-growth momentum strategy. The stock meets the strict technical filters of the Minervini Trend Template, confirming it is in a solid uptrend and is a market leader. Also, it is backed by fundamental positive factors, including high sales growth, quickly rising free cash flow, and, most importantly, major upwardly revised earnings estimates. This combination of technical health and fundamental speed is exactly what this strategy aims to find.

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Interested in finding other stocks that meet these strict growth and momentum standards? You can find more possible choices by using the High Growth Momentum + Trend Template screen.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice of any kind. The analysis and screens mentioned are based on specific methodologies, but past performance is not indicative of future results. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment decisions.