INNODATA INC (NASDAQ:INOD) Meets the Minervini Trend Template with High Growth Momentum
By Mill Chart
Last update: Nov 4, 2025
The Mark Minervini strategy is a methodical process for finding stocks with high potential by joining strict technical analysis with fundamental growth measurements. This system, called Specific Entry Point Analysis (SEPA), concentrates on stocks showing solid uptrends, excellent earnings and sales growth, and definite reasons for future performance. By applying the Minervini Trend Template, investors can filter for stocks that are technically healthy, while high growth momentum standards confirm these companies are seeing major operational gains. This two-step process is designed to identify leading stocks early in their growth phases, mixing momentum with fundamental health.
Meeting the Minervini Trend Template
Innodata Inc (NASDAQ:INOD) shows a technical setup that matches the Minervini Trend Template, which demands stocks be in clear uptrends over various periods. The template's moving average rules confirm a stock's trend is built on a solid base, which is essential to the SEPA method's principle of trading with the flow of confirmed momentum.
- The current price of $72.46 is higher than all main moving averages: the 50-day SMA ($68.20), 150-day SMA ($50.72), and 200-day SMA ($49.32).
- The 150-day SMA is higher than the 200-day SMA, and the 50-day SMA is higher than both the 150-day and 200-day SMAs, verifying the consistency and force of the uptrend.
- The stock's price is 174% higher than its 52-week low of $26.41, greatly passing the template's rule of being at least 30% above the low, pointing to a major rebound and momentum.
- With a current price within 25% of its 52-week high of $93.85, the stock satisfies the condition of being close to new highs, a trait of market-leading stocks.
- A ChartMill Relative Strength rating of 94.49 shows that INOD is performing better than almost 95% of all stocks, a central idea of the Minervini strategy that favors sector and market front-runners.
High Growth Momentum Fundamentals
The Minervini strategy highlights that large price moves are frequently preceded by and happen alongside major gains in a company's fundamental results. This is why high growth momentum is a vital part, as "big earnings attract big attention" from large investors. Innodata displays these traits across several important measurements.
- Earnings Growth: The company has shown exceptional earnings per share (EPS) growth, with a 1,278% gain over the trailing twelve months. Quarterly growth numbers are even more notable, with the latest quarter showing a 40,900% year-over-year gain, and the previous three quarters also reporting increases over 400%.
- Sales Acceleration: Revenue growth is strong, with a 112% gain over the last year. Recent quarterly sales growth has been particularly high, varying from 79% to 135% over the last four quarters, showing continued and quickening demand.
- Estimate Revisions and Surprises: Analyst optimism is increasing, with positive changes of 6.7% for next year's EPS estimates over the last three months. Also, the company has exceeded EPS estimates in each of the last four quarters, with an average beat of 99.98%, indicating repeated better-than-expected results.
- Profitability: The company holds good profit margins, with the last reported quarter at 12.4%. This shows a capacity to turn top-line revenue growth into bottom-line earnings.
Technical and Setup Assessment
According to the technical analysis report, INOD has a good technical base but might need waiting for a better entry point. The report gives a technical rating of 8 out of 10, noting a positive long-term trend and top-tier market performance. However, the setup quality rating is now a 4, as the stock has been moving in a broad range over the last month and is near the bottom of that range after a recent decline. While the long-term trend is still positive, the report indicates that new long positions could be better started after the price movement becomes steadier, offering a more favorable entry point.
Finding Similar Opportunities
For investors looking for other companies that match this combination of technical health and high growth momentum, the predefined screen used to find INOD can be a useful tool. This screen methodically uses the Minervini Trend Template and high growth rules to the market.
Disclaimer: This is not investment advice. The content is intended for information and education purposes only. It is essential to conduct your own research and consider your risk tolerance before making any investment decisions. Please read our full disclaimer and terms of use to understand our obligations.
