iRhythm Technologies Inc (NASDAQ:IRTC) Fits Mark Minervini’s Trend-Following Strategy with Strong Technicals and Growth Momentum

iRhythm Technologies Inc (NASDAQ:IRTC) has become a possible choice for investors using Mark Minervini’s trend-following method, which blends technical strength with fundamental growth trends. The strategy targets stocks in strong upward trends (Stage 2) with improving earnings and revenue growth, traits often seen in top-performing companies. IRTC not only fits Minervini’s strict Trend Template requirements but also displays the growth traits favored by momentum investors.

Why IRTC Matches the Minervini Trend Template

Minervini’s approach highlights stocks with solid technical foundations, verified by these points:

1. Price Above Key Moving Averages

   • IRTC’s current price ($164.98) is notably higher than its 50-day SMA ($143.05), 150-day SMA ($120.45), and 200-day SMA ($110.58).
   • The 50-day SMA is above both the 150-day and 200-day SMAs, showing bullish alignment across timeframes.

2. Rising Moving Averages

   • The 150-day and 200-day SMAs are moving upward, confirming steady upward momentum.

3. Strong Relative Strength

   • IRTC’s relative strength (RS) score of 95.07 means it beats 95% of all stocks, a sign of leadership.

4. Near 52-Week High

   • The stock is trading within 2% of its 52-week high ($168.32), indicating ongoing demand.
   • It has also jumped 195% from its 52-week low ($55.92), showing strong recovery and growth.

These factors match Minervini’s view that top performers often come from periods of tight volatility with breakout potential.

Strong Growth Fundamentals

Beyond technicals, IRTC shows improving growth metrics important for momentum investors:

• Revenue Growth:

  • Quarterly revenue growth (YoY) rose to 26.1% in the latest quarter, up from 20.3% in the previous quarter.
  • Annual revenue growth (TTM) is at 20.1%, with steady upward revisions in forward estimates (+2.08% for next year).

• Earnings Momentum:

  • EPS growth (YoY) climbed 47.5% last quarter, following 22.8% growth in the prior quarter.
  • Despite negative GAAP EPS (-$2.52), the improving trend and analyst upgrades point to shrinking losses.

• Industry Leadership:

  • IRTC beats 95% of its peers in the Health Care Equipment & Supplies sector, a key trait Minervini seeks in market leaders.

Technical Strength and Setup

ChartMill’s technical report gives IRTC a top rating of 10, noting:

• A clear upward trend in both short-term and long-term timeframes.
• Multiple support levels, including a key range between $141.86 and $143.28 (backed by moving averages and trendlines).
• High volume during recent rallies, confirming institutional interest.

However, the report mentions the stock is overextended after a sharp rise, suggesting waiting for a pullback or consolidation before entering. View the full technical analysis here.

Conclusion

IRTC fits the Minervini strategy’s ideal profile: a technically strong stock with high relative strength, backed by improving fundamentals. While its current price action calls for careful entry timing, the mix of trend alignment and growth momentum makes it a noteworthy watchlist candidate for growth-focused investors.

For more stocks matching this screen, check the High Growth Momentum + Trend Template screener.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management strategies before trading.