Inter & Co Inc (NASDAQ:INTR) Screens as a High-Growth Momentum Leader

Inter & Co Inc - Class A (NASDAQ:INTR) has recently appeared through a screening method that joins Mark Minervini's strict Trend Template with a High Growth Momentum (HGM) filter. This two-part method aims to find companies that are not only in strong technical uptrends but also show the fundamental traits of high-growth businesses. The idea is based on the concept that stocks with solid price momentum, backed by good earnings and sales growth, often offer interesting chances for investors looking for faster capital gains.

Meeting the Minervini Trend Template

The foundation of this screening process is the Minervini Trend Template, a methodical way made to find stocks in clear Stage 2 uptrends. A stock must meet a strict group of technical rules to qualify, and Inter & Co Inc shows a strong fit with these rules.

• Price Above Key Moving Averages: The stock's current price trades above its 50-day, 150-day, and 200-day simple moving averages. This multi-level confirmation shows strength across short, medium, and long-term timeframes.
• Rising Long-Term Trends: Both the 150-day and 200-day moving averages are moving upwards, a required condition that verifies the sustainability of the long-term bull market phase.
• Bullish Moving Average Alignment: The 50-day moving average is positioned above the 150-day moving average, which is also above the 200-day moving average. This ordered, rising formation is a classic sign of a solid, speeding uptrend.
• Proximity to Highs: The stock is trading within 25% of its 52-week high, showing it keeps solid momentum and is a front-runner within its group, instead of being stuck in a basing pattern.
• Significant Recovery: The current price is more than 100% above its 52-week low, displaying a solid recovery and growth pattern that often comes before large-scale moves higher.
• Superior Relative Strength: With a relative strength ranking of 87, INTR is doing better than 87% of the whole stock market. This is a key part of the Minervini method, as real market front-runners consistently show better price performance.

High Growth Momentum Fundamentals

Beyond a technically good chart, the strategy requires underlying fundamental strength. The High Growth Momentum rating assesses a company's growth path, and Inter & Co Inc presents several main traits that support its inclusion.

• Explosive Earnings Growth: The company has reported very high year-over-year earnings growth. The most recent full-year EPS grew by 177%, while the trailing twelve-month (TTM) number shows a 69% rise. On a quarterly basis, EPS growth has sped up, with the last three quarters showing rises of 51%, 51%, and 70%, in that order. This sequence of high, and in some times speeding, earnings growth is precisely what draws institutional interest and fuels strong performance.
• Strong Revenue Expansion: Top-line growth is also notable, with TTM revenue up 34%. Quarterly sales growth has been consistently solid, staying around 32-35% over recent quarters. This shows that the company is not just reducing expenses to increase profits but is actually growing its business operations at a fast pace.
• Greatly Improving Profitability: The company's profit margin has undergone a notable change, improving from 6.1% in the prior full year to 13.9% in the most recent report. This major expansion points to better operational efficiency and pricing power, two signs of a high-quality growth company.

Technical Health and Setup Quality

A closer look at the technicals supports the positive view. According to the detailed technical report, INTR gets a good technical rating of 8 out of 10, showing its steady performance and positive long-term trend. Also, it presents a reliable setup rating of 8, showing that the stock is currently moving sideways within a set range with lower volatility. This makes a possible entry point with a clear support area near $8.57, which can act as a sensible level for a stop-loss order, properly controlling risk on any new position.

Discovering Similar Opportunities

For investors curious about using this strict growth and momentum strategy, the job of finding qualifying stocks can be made easier. The screen that found Inter & Co Inc is easily available and can be used to find other possible candidates that meet these strict technical and fundamental rules.

Click here to access the "High Growth Momentum + Trend Template" screen for more results.

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Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. The analysis is based on data provided and does not guarantee future performance. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment decisions. Please read our full disclaimer for more details.