IRHYTHM TECHNOLOGIES INC (NASDAQ:IRTC) Shows Strong Growth Momentum and Technical Health

The High Growth Momentum + Trend Template screen joins Mark Minervini's structured process for finding stocks in powerful uptrends with fundamental measures aimed at firms displaying quickened growth. This process centers on securities showing both technical health via Minervini's Trend Template, which assesses price movement, moving averages, and relative performance, and fundamental drive through numbers like earnings growth, sales speed-up, and favorable estimate changes. Stocks fulfilling these joined measures stand for firms placed in positive technical formations while indicating underlying business drive that might back continued price gains.

Technical Health Via Minervini's Trend Template

IRHYTHM TECHNOLOGIES INC (NASDAQ:IRTC) shows clear agreement with Minervini's Trend Template measures, which is made to find stocks in confirmed uptrends. The template's focus on moving average arrangement and price level compared to important markers makes sure chosen securities display both immediate and extended momentum.

Important technical measures fulfilled by IRTC are:

• Current price ($187.30) trading above all main moving averages (50-day: $176.96, 150-day: $149.36, 200-day: $139.02)
• All moving averages moving upward, confirming continued momentum
• 50-day moving average placed above both 150-day and 200-day averages
• Current price located 164% above its 52-week low of $71.00
• Trading within 12% of its 52-week high of $212.00
• Relative performance score of 94.9, meaning it does better than nearly 95% of all stocks

These technical features agree with Minervini's thinking of concentrating on stocks in Stage 2 uptrends, securities that have built solid foundations and are showing continued buying interest from institutional investors. The steady placement above rising moving averages across several timeframes implies the stock keeps strong support levels while the high relative performance indicates market leadership.

Fundamental Drive Factors

Beyond technical health, IRTC displays several fundamental features that interest growth investors looking for firms with quickening business results. The company's financial numbers show notable betterment across important growth signs.

Sales and earnings drive points:

• Quarterly sales growth of 30.7% year-over-year
• Quarterly EPS growth of 95.2% compared to the same quarter last year
• Sales speed-up visible across recent quarters (20.3% to 26.1% to 30.7%)
• Three straight EPS estimate beats in the last four quarters
• Analyst EPS changes for next year raised by 11.3% over three months
• Free cash flow per share growth of 125.6% year-over-year

These fundamental gains are especially notable within Minervini's structure, which notes that stocks showing fast price movement often have underlying fundamental catalysts. The speeding-up sales growth joined with greatly improving earnings results suggests the firm might be going through what Minervini calls a "fundamental turning point", where bettering business conditions draw institutional attention and drive continued price gains.

Industry Placement and Market Leadership

IRTC's place within the Healthcare Equipment & Supplies industry further supports its investment case. The company's relative performance of 97 within its industry means it's doing better than 97% of sector counterparts, a feature Minervini notes as vital for finding real market leaders. This sector leadership often comes before long periods of outperformance as institutional money moves toward firms displaying both fundamental betterment and technical health.

The company's focus on digital cardiac monitoring services places it in an increasing healthcare technology part, with the speeding-up sales growth suggesting successful market entry and use of its Zio System products. This business drive gives the fundamental base for the technical health seen in the price chart.

Technical Study Summary

According to ChartMill's technical report, IRTC gets a full technical score of 10/10, reflecting outstanding technical condition across both immediate and extended timeframes. The study notes steady performance with both immediate and extended trends strongly positive. The stock is now trading near its 52-week high, which usually shows a strong technical signal, especially when joined by the other positive technical features seen.

While the setup quality score of 4/10 implies the stock might be stretched in the near term and could gain from a pause period, the underlying technical health stays outstanding. The report finds several support areas between $152.26 and $183.56, giving possible zones for new entries should the stock have a healthy pullback.

View the complete technical analysis report for detailed support and resistance levels

Investment Points

For investors following the Minervini process, IRTC presents a clear case of a stock displaying both the technical features of a strong uptrend and the fundamental drive of a growing business. The joining of a full technical score, high relative performance, speeding-up sales and earnings growth, and positive analyst changes forms a profile that agrees well with growth-focused plans.

However, as with any investment process, position size and risk control stay important. The Minervini plan notes the need for set entry points, stop-loss placement, and gradual exposure to handle risk while taking part in possible upside.

Discover more High Growth Momentum + Trend Template candidates through our specialized screening tool

Disclaimer: This analysis is for informational and educational purposes only and does not constitute investment advice. All investments carry risk, and past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.