INNOVATIVE SOLUTIONS & SUPP (NASDAQ:ISSC) has emerged as a compelling candidate for growth investors, meeting both the technical requirements of Mark Minervini’s Trend Template and exhibiting strong fundamental growth metrics. The stock’s recent performance and financial trends suggest it could be well-positioned for further upside.
Why ISSC Fits the Minervini Trend Template
Minervini’s strategy emphasizes stocks in strong uptrends with clear technical strength. ISSC meets these criteria:
- Price Above Key Moving Averages: The stock is trading above its 50-day ($12.39), 150-day ($9.42), and 200-day ($8.91) moving averages, confirming a bullish trend.
- Upward-Sloping Moving Averages: The 150-day and 200-day MAs are rising, indicating sustained upward momentum.
- Relative Strength: With a ChartMill Relative Strength score of 97.84, ISSC outperforms nearly 98% of all stocks.
- Price Performance: The stock is up 145% over the past year and remains within 8.5% of its 52-week high ($16.82).
High Growth Fundamentals
Beyond technicals, ISSC demonstrates strong growth characteristics:
- Earnings Growth: EPS surged 328.6% year-over-year in the most recent quarter, with TTM EPS growth at 83.3%.
- Revenue Expansion: Quarterly sales grew 104.2% YoY, while TTM revenue increased 58.7%.
- Profitability Improvement: The latest quarter’s profit margin expanded to 24.3%, up from 4.6% in the prior quarter.
- Analyst Upgrades: EPS and revenue estimates for next year have been revised upward by 11.1% and 13.9% over the past three months.
Technical Outlook
According to ChartMill’s technical report, ISSC scores a perfect 10 on technical health, supported by strong trends and momentum. While the setup rating is currently moderate (4/10), indicating some volatility, the stock’s overall trend remains favorable. Key support lies near $13.51, providing a potential risk-management level.
For a deeper technical breakdown, review the full technical analysis report for ISSC.
Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and technical strength, updated daily.
Disclaimer
This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.
