INNOVEX INTERNATIONAL INC (NYSE:INVX) Combines Strong Trend Template Setup with High-Growth Fundamentals

The method used in this study joins Mark Minervini's strict Trend Template with a concentration on high growth momentum investing. Minervini's framework is built to find stocks in strong uptrends by looking at particular technical measures connected to price movement, moving averages, and relative strength. When this technical base is combined with a company showing increasing fundamental growth in earnings and sales, it forms a strong profile for investors looking for high-growth chances. This combined method tries to find stocks that are both technically sound and supported by solid business results.

Technical Strength and the Trend Template

INNOVEX INTERNATIONAL INC (NYSE:INVX) shows a strong technical view that matches well with the needs of the Minervini Trend Template. This template is important because it makes sure an investor only looks at stocks that are in a clear, continuing uptrend, therefore trading with the main market momentum.

A look at the technical measures confirms that INVX fits the main ideas of the Trend Template:

• Price Above Key Moving Averages: The present price is trading above the increasing 50-day, 150-day, and 200-day simple moving averages. This order confirms the stock is in a solid uptrend across several time periods.
• Moving Average Order: The 50-day SMA is above the 150-day SMA, which is above the 200-day SMA. This positive order of moving averages is a key part of Minervini's system, showing that buyers have clear command.
• Proximity to Highs: The stock is trading within 25% of its 52-week high, showing solid momentum and a habit of leading its market group, instead of following or bouncing back from lows.
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) rating of 90.39, INVX is doing better than most of the market. Minervini points out that leaders in a bull market usually show high relative strength, often above the 70-80 level.

High Growth Momentum Fundamentals

Beyond a clean technical setup, the Minervini plan gives major importance to underlying fundamental soundness. A stock must show solid and often increasing growth in earnings and sales to be considered a true leader. INVX displays several fundamental traits that are very appealing for growth investors.

The company's earnings results show notable increase and soundness:

• Explosive Earnings Growth: The Trailing Twelve Months (TTM) EPS has increased by a notable 246%, while the latest quarterly EPS grew 171% year-over-year.
• Earnings Momentum: This growth is not a single event, as the prior three quarters also reported large year-over-year increases of 130%, 140%, and 775%, in that order.
• Profitability Expansion: The company's profit margin in the last quarter was 16.3%, a major increase from 6.8% in the quarter before, showing better operational effectiveness and pricing ability.

The revenue view is equally solid, confirming that top-line growth is driving the bottom-line surge:

• Strong Revenue Expansion: TTM revenue has increased by 47.7%, with the last quarter showing a 58.1% rise compared to the same quarter last year.
• Consistent Top-Line Performance: The company has exceeded revenue estimates in three of the last four quarters, with an average beat of 5.3%.
• Healthy Cash Flow Generation: Free Cash Flow per share has jumped by 327% over the past year, giving the company financial room and confirming the quality of its earnings.

Technical Analysis Overview

The automated technical report for INVX gives the stock a top rating of 10 out of 10, reflecting its outstanding technical condition. The long-term and short-term trends are both seen as positive, and the stock is trading near its 52-week high. It is important that the stock shows better performance, beating 90% of all other stocks and 81% of its group in the Energy Equipment & Services industry over the past year. While the technical rating is first-class, the report states that the present setup rating is a 5, meaning the recent price movement has been unstable and that investors might find a better, lower-risk entry point during a future time of price stabilization.

For a detailed, point-by-point technical review, you can examine the full technical analysis report for INVX.

Discovering Similar Opportunities

INNOVEX INTERNATIONAL INC acts as a leading example of a stock that meets both strict technical and fundamental growth measures. For investors trying to find other businesses with a similar view of solid trends and high growth momentum, this method can be used in a structured way. You can use the pre-configured High Growth Momentum + Trend Template screen on ChartMill to find a selected list of such possible investments.

Disclaimer: This is not investment advice. The content is meant for information and learning purposes only. It is vital to do your own research and think about your financial position and risk comfort before making any investment choices. Please read our full disclaimer and terms of use to understand our responsibilities.