Would Mark Minervini consider OPENLANE INC (NYSE:KAR) a top stock pick?

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if OPENLANE INC (NYSE:KAR) is suited for growth investing. Investors should of course do their own research, but we spotted OPENLANE INC showing up in our Minervini growth screen, so it may be worth spending some more time on it.

Checking the Minervini Trend Template.

KAR checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

What matters for high growth investors.

Earnings Momentum

• In the most recent financial report, KAR reported a 31.25% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• Over the past year, KAR has demonstrated 19.72% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• KAR shows accelerating EPS growth: when comparing the current Q2Q growth of 31.25% to the previous year Q2Q growth of -51.52%, we see the growth rate improving.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, KAR demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With a favorable trend in its free cash flow (FCF) over the past year, KAR demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• With a Debt-to-Equity ratio at 0.0, KAR showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.

Institutional Confidence & Market Strength

• KAR demonstrates a balanced ownership structure, with institutional shareholders at 103.0%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• The Relative Strength (RS) of KAR has consistently been strong, with a current 88.78 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. OPENLANE INC demonstrates promising potential for sustained price momentum.

How does the Setup look for NYSE:KAR

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:KAR is 6:

Besides having an excellent technical rating, KAR also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 20.21, a Stop Loss order could be placed below this zone.

Check the latest full technical report of KAR for a complete technical analysis.

Concluding

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.