Hesai Group (NASDAQ:HSAI) Emerges as a Top Growth and Momentum Pick

Hesai Group (NASDAQ:HSAI) has become a notable option for investors using systematic growth and momentum methods. The stock was found through a screening process that joins Mark Minervini's strict Trend Template with a High Growth Momentum filter, a system made to find equities showing both solid technical condition and strong fundamental growth. This two-part method aims to find companies not just in strong uptrends but also those showing the financial speed that frequently comes before continued price increases.

Technical Strength and the Minervini Trend Template

A central idea of the Minervini method is to invest in the direction of a stock's existing momentum, concentrating on those in a clear Stage 2 uptrend. Hesai Group's present technical position matches well with the requirements of the Trend Template, which is made to filter for such stocks.

The stock's price movement compared to its main moving averages is a primary sign of trend condition. Presently, HSAI trades well above its increasing 50-day ($25.01), 150-day ($20.61), and 200-day ($19.20) simple moving averages. This arrangement, where the shorter-term averages are above the longer-term ones and all are moving up, confirms a solid and aligned positive trend across several timeframes, a fundamental part of the Minervini method.

Also, the stock's position compared to its 52-week range shows solid momentum. With a present price of $28.25, HSAI is trading much higher than its 52-week low of $4.02 (an increase of over 600%) and within 10% of its 52-week high of $30.85. Stocks trading close to their highs often have the momentum to keep rising, a main filter in the Trend Template to make sure of participation in market-leading names.

Finally, Hesai shows very good relative strength, with a ChartMill Relative Strength rating of 98.74. This shows the stock has done better than almost 99% of the market, a vital point Minervini highlights to make sure an investor's money is placed in the strongest performers, not just those moving with the wider market.

Fundamentals for High Growth Momentum

While the Trend Template finds the "when" to invest from a technical view, the High Growth Momentum rating concentrates on the "why" from a fundamental view. A high HGM rating needs a company to show sped-up growth in earnings and sales, which are the fundamental causes of super-performance. Hesai Group displays several of these high-growth features.

The company's earnings path is especially noteworthy. On a trailing twelve-month (TTM) basis, EPS has increased by a striking 160.89%. More significantly, this growth has sped up sharply on a quarterly basis, with the newest quarter showing year-over-year EPS growth of 255.88%. This design of speeding up is a strong sign that the company's profitability is turning positive.

Revenue growth gives a second pillar of support. TTM revenue has risen by 36.48%, and recent quarterly sales growth has sped up to 53.94%. Solid and speeding up top-line growth shows growing market share and strong demand for Hesai's lidar products, giving a fundamental reason for the stock's momentum.

Market Context and Technical Outlook

The wider market environment, with the S&P 500 showing positive long-term and short-term trends, gives a supportive background for leading stocks like HSAI to keep their climb. Hesai's technical report from ChartMill gives the stock a complete rating of 10 out of 10, reflecting its very good technical condition. The report notes the stock is in a clear bull flag formation, a pause inside an uptrend that can frequently come before a further climb. Support levels are found in the $28.24 and $23.05-$23.40 areas, giving clear technical levels for risk control.

For a detailed breakdown of the technical analysis, including exact support and resistance levels, you can look at the full HSAI Technical Report.

A Strategy-Aligned Opportunity

Hesai Group presents a notable case for investors following a structured growth and momentum method. It meets the strict technical filters of the Minervini Trend Template, confirming a solid Stage 2 uptrend, while its speeding up earnings and sales growth give the fundamental fuel that high-growth investors look for. This mix of technical strength and fundamental speeding up makes HSAI a stock deserving of more study for investors aiming for high-growth momentum.

Discover More Potential Candidates

The method used to find Hesai Group can be used systematically to find other possible chances. You can find more stocks that meet similar technical and high-growth fundamental requirements by using the High Growth Momentum + Trend Template screen on ChartMill.

Disclaimer: This is not investment advice. The content is meant to be used for information and learning only. It is very important to do your own research and think about your personal money situation before making any investment choices. Please read our full disclaimer for more information.