INTREPID POTASH INC (NYSE:IPI) – A Strong Contender in Growth and Momentum Investing

INTREPID POTASH INC (NYSE:IPI) has been identified as a potential candidate for growth and momentum investors, meeting both the Minervini Trend Template criteria and high-growth momentum screening. The stock demonstrates strong technical trends and improving fundamentals, making it worth a closer look.

Why IPI Fits the Minervini Trend Template

Mark Minervini’s Trend Template focuses on stocks exhibiting strong uptrends with key technical confirmations. IPI meets several of these criteria:

• Price Above Key Moving Averages:
  • Current price ($36.62) is above the 50-day ($35.92), 150-day ($29.44), and 200-day ($28.36) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.
• Upward-Trending Moving Averages:
  • The 150-day and 200-day MAs are rising, reinforcing long-term strength.
• Price Relative to 52-Week Range:
  • IPI is trading within 6% of its 52-week high ($39.01) and is 76% above its 52-week low ($20.75).
• Strong Relative Strength:
  • With a ChartMill Relative Strength (CRS) score of 91.53, IPI outperforms 91% of all stocks.

High Growth Momentum Fundamentals

Beyond technical strength, IPI shows promising growth characteristics:

• Earnings Growth:
  • TTM EPS growth stands at 110.7%, with the latest quarter showing a staggering 378.6% year-over-year increase.
  • Analysts have revised next-year EPS estimates upward by 825% over the past three months.
• Revenue Trends:
  • Revenue growth (TTM) is up 63.3%, with the last quarter posting 23.3% year-over-year growth.
  • The company has beaten revenue estimates in all of the last four quarters, with an average beat of 19.2%.
• Free Cash Flow Expansion:
  • Free cash flow per share surged 132.2% over the past year, indicating improving operational efficiency.

Technical Outlook & Trade Setup

The ChartMill Technical Report assigns IPI a strong technical rating of 8/10 and a setup rating of 8/10, highlighting:

• Consolidation Near Resistance: The stock is trading in a tight range ($33.77–$38.48), with resistance around $38.11–$38.19. A breakout above this zone could signal further upside.
• Support Levels: Key support lies at $34.62–$36.34, providing a potential stop-loss area for traders.
• Long-Term Uptrend: Despite short-term consolidation, the long-term trend remains positive.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.

Disclaimer

This is not investing advice. The article highlights observations at the time of writing, but investors should conduct their own analysis before making decisions.