Hesai Group (NASDAQ:HSAI) – A High-Growth Stock Meeting Minervini’s Trend Template

Hesai Group (NASDAQ:HSAI) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company, a leader in LiDAR technology for autonomous vehicles and ADAS, demonstrates strong technical and fundamental characteristics that make it a candidate for further analysis.

Why HSAI Fits the Minervini Trend Template

Minervini’s strategy focuses on stocks exhibiting strong uptrends with improving fundamentals. HSAI meets these criteria:

• Price Above Key Moving Averages:

  • Current price ($20.82) is above the 50-day ($16.72), 150-day ($13.73), and 200-day ($11.37) moving averages.
  • The 200-day MA is trending upward, confirming long-term strength.

• Relative Strength:

  • HSAI has a ChartMill Relative Strength (CRS) score of 98.99, outperforming nearly 99% of stocks.

• Price Performance:

  • The stock is trading 328% above its 52-week low and within 14% of its 52-week high, indicating strong momentum.

• Sector Leadership:

  • HSAI is part of the Automobile Components industry and outperforms 100% of its peers, a key trait Minervini looks for in market leaders.

High-Growth Fundamentals

Beyond technical strength, HSAI shows accelerating growth metrics:

• Earnings Growth:

  • EPS (TTM) growth: +117.7% year-over-year.
  • Quarterly EPS growth (Q2Q): +73.4% (latest quarter), with prior quarters showing +259.5% and +58.0%.

• Revenue Growth:

  • Revenue (TTM) growth: +24.2% year-over-year.
  • Quarterly sales growth (Q2Q): +45.0% (latest quarter), with previous quarters at +28.3% and +21.1%.

• Profitability Improvement:

  • Profit margin (Q-1): 20.4%, showing strong operational efficiency.

Technical Outlook

The ChartMill Technical Report assigns HSAI a perfect technical rating of 10, citing:

• Strong short- and long-term uptrends.
• Outperformance against the broader market.
• Support levels at $12.75-$12.82 and $11.19, with resistance near $21.45-$21.64.

However, the report notes that while HSAI has excellent momentum, its current setup lacks consolidation, making entry points less ideal for now.

Conclusion

HSAI presents a compelling case for growth investors, meeting Minervini’s technical criteria and showing strong earnings and revenue expansion. While the stock’s volatility may require patience for an optimal entry, its leadership in LiDAR technology and market-beating performance make it worth monitoring.

Our High Growth Momentum + Trend Template screener lists more high-growth stocks with strong trends.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.