IBEX Ltd (NASDAQ:IBEX) Fits Mark Minervini's High-Growth Momentum Strategy

IBEX Ltd (NASDAQ:IBEX) has become a notable option for investors using Mark Minervini’s high-growth momentum strategy, which mixes strict technical screening with fundamental growth measures. This method, made well-known by the two-time U.S. Investing Champion, focuses on finding stocks in solid uptrends with quickening earnings and revenue growth, traits frequently seen in top companies before significant price gains. The strategy uses Minervini’s Trend Template to sort for technically sound stocks and adds growth momentum filters to highlight firms with excellent financial results.

Technical Strength and Trend Template Alignment

IBEX shows an almost perfect match with Minervini’s Trend Template, which demands stocks display strong uptrends across various timeframes. Important technical standards include the stock trading above key moving averages, with those averages themselves in upward slopes, a signal of continued momentum. IBEX’s current price of $40.94 is positioned well above its rising 50-day ($30.67), 150-day ($27.91), and 200-day ($26.35) moving averages. The 50-day is also above the 150-day and 200-day averages, and the 150-day is higher than the 200-day, affirming the stock’s fit with the template’s layered momentum reviews.

Also, the stock is trading within 5% of its 52-week high of $42.99 and has jumped 134% above its 52-week low of $17.53, well beyond the template’s need for a 30% cushion from the low. Its relative strength ranking of 94.43 shows it is doing better than almost 95% of all stocks, confirming its leading position. These elements together indicate a stock in a Stage 2 climb, marked by solid institutional accumulation and a strong chance of ongoing outperformance.

Fundamental Growth and Momentum

From a fundamental view, IBEX shows the type of quickened growth that high-growth investors seek. The company has posted solid earnings growth, with EPS growth of 32.1% over the trailing twelve months and even better recent quarterly results, EPS grew 50% year-over-year in the latest quarter, after gains of 17.1%, 34.1%, and 30% in earlier quarters. This sequence of quickening is vital under Minervini’s approach, as it often pulls institutional interest and leads to more price increases.

Revenue growth has also been good, increasing 9.8% over the past year, with the most recent quarter jumping 18.2% year-over-year. The company has a flawless history of surpassing earnings and revenue estimates over the last four quarters, with an average EPS beat of 13.7%, a signal of overlooked operational health. Profit margins have grown sequentially, hitting 6.5% in the last quarter, up from 5.8% three quarters before, showing better efficiency and pricing ability.

High Growth Momentum (HGM) Rating

IBEX’s High Growth Momentum (HGM) rating of at least 4 mirrors its good mix of earnings revisions, estimate beats, and growth quickening, important parts of Minervini’s stock selection process. The HGM rating makes sure that a company is not only technically good but also fundamentally set for continued growth. In IBEX’s situation, upward changes to future earnings estimates, along with a record of outperformance, support its place among high-growth options.

Technical Analysis Overview

According to ChartMill’s technical report, IBEX has a perfect technical rating of 10, showing outstanding trend strength, relative performance, and fit with moving averages. Both its short-term and long-term trends are good, and it is trading near 52-week highs with steady momentum. The report does mention, however, that the setup rating is now a 3, showing that while the stock is technically good, it may be stretched in the near term and might gain from a pause before giving a better entry.

Review the full technical report for IBEX here.

Conclusion

IBEX Ltd stands as a notable example of a stock that fits both the technical demands of Minervini’s Trend Template and the fundamental standards of high-growth momentum investing. Its strong price trend, backed by quickening earnings and revenue growth, places it as a frontrunner in the IT services sector. While the stock might be ready for a pause after its good run, its core strengths make it a noteworthy option for investors concentrated on high-growth, momentum-led strategies.

For those wanting to look into similar high-growth momentum stocks that fit Minervini’s standards, more results can be found using this customized screen: High Growth Momentum + Trend Template Screen.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.