Intellicheck Inc (NASDAQ:IDN) Shows Strong Minervini Trend and Growth Momentum

The search for high-growth stocks often involves a blend of disciplined technical screening and rigorous fundamental analysis. One systematic approach that combines these elements is the strategy popularized by trader Mark Minervini. His methodology, centered on the Specific Entry Point Analysis (SEPA), focuses on identifying stocks that are not only in strong, established uptrends but are also backed by improving business fundamentals. This dual-filter process aims to catch leaders early in their major price advances, emphasizing risk management and precise entry points. A stock that recently surfaced through a screen combining Minervini's Trend Template with a High Growth Momentum filter is Intellicheck Inc (NASDAQ:IDN).

Assessing the Technical Foundation: The Trend Template

The Minervini Trend Template provides a strict technical checklist designed to filter for stocks in a dominant Stage 2 uptrend. It ensures an investor is only considering equities where the trend, momentum, and relative strength are aligned favorably. For Intellicheck, a review of the key criteria shows a positive technical picture.

• Trend Alignment: The stock's current price sits above all its major moving averages (50-day, 150-day, and 200-day). Crucially, these averages are themselves in the correct bullish alignment: the 50-day SMA ($5.50) is above the 150-day SMA ($5.29), which is above the 200-day SMA ($4.61). Furthermore, the 200-day moving average has a rising slope, confirming a sustained long-term uptrend.
• Proximity to Highs: A core tenet of the Minervini approach is to focus on strength, not cheapness. IDN's current price is approximately 210% above its 52-week low of $2.17 and trades within 10% of its 52-week high of $7.48. This meets the template's requirement of being within 25% of a new high, suggesting the stock is acting like a market leader.
• Superior Relative Strength: Perhaps most telling is the stock's ChartMill Relative Strength (CRS) rating of 96.43. This means IDN's price performance over the past year has outperformed over 96% of the entire market universe. Minervini emphasizes that the biggest winners typically show high relative strength early in their moves, indicating institutional accumulation and sector leadership.

This combination of technical factors suggests IDN is not merely rising but is doing so with the kind of structured, strong trend that the Minervini strategy seeks to identify.

Evaluating the Growth Engine: High Growth Momentum

While a strong chart is essential, the Minervini philosophy holds that the most significant stock moves are fueled by fundamental improvement. The "High Growth Momentum" aspect of the screen looks for evidence of better sales, earnings, and analyst sentiment. Intellicheck's recent financial metrics reveal several positive catalysts.

• Earnings Improvement: The company has demonstrated clear momentum in profitability. Its Earnings Per Share growth for the most recent quarter compared to the year-ago period increased by 125%. Even more notable is the trend of consistently beating analyst expectations; IDN has topped EPS estimates in each of the last four quarters, with an average beat of over 126%.
• Revenue Growth and Revisions: Top-line growth is also solid, with sales up nearly 28% year-over-year in the last quarter. Analysts are taking note of this improving path, as shown by a large 133% upward revision to next year's EPS estimates over the past three months. Such significant estimate revisions often come before further institutional interest and price gains.
• Path to Profitability: After periods of investment, the company is turning growth into bottom-line results. The profit margin in the last reported quarter was positive at 4.82%, and free cash flow has grown by over 111% in the past year. This move toward consistent profitability is a key factor for high-growth investors, as it reduces dependency on external financing and supports the business model.

These fundamental improvements provide the "catalyst" component of the Minervini SEPA system, offering a clear reason behind the stock's technical strength.

Technical Health and Setup Summary

Beyond the specific Trend Template criteria, a wider look at Intellicheck's technical health is positive. According to ChartMill's proprietary analysis, IDN earns a high Technical Rating of 9 out of 10, reflecting very good performance across both short and long-term timeframes. The long-term and short-term trends are both rated as positive. The analysis also notes a good Setup Rating of 7, indicating the stock has been consolidating recently, which can provide a clearer area for defining risk on a new position. Support levels are identified near $6.04 and $4.67, which can serve as logical reference points for stop-loss placement.

For a detailed breakdown of the technical picture, including support/resistance zones and trade setup suggestions, you can review the full technical report for IDN.

Conclusion

Intellicheck Inc presents a case where a strict, rules-based screening process has identified a stock that fits with both momentum and growth investing principles. It shows the typical signs of a Minervini-style setup: a stock in a strong, multi-timeframe uptrend, trading near highs with superior relative strength, and, importantly, supported by improving fundamentals and positive analyst revisions. While past performance is no guarantee of future results, this mix of technical and fundamental factors makes IDN a candidate deserving of further study for investors following such methods.

Discover More Potential Candidates This analysis of Intellicheck came from a specific screen designed to find stocks meeting both trend and high-growth criteria. If you are interested in exploring other securities that currently fit this profile, you can access the live screening results via this link: High Growth Momentum + Trend Template Screen.

Disclaimer: This article is for informational and educational purposes only. It is not intended as investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data believed to be reliable, but its accuracy cannot be guaranteed. Investing involves risk, including the potential loss of principal. Always conduct your own research and consider consulting with a qualified financial advisor before making any investment decisions.