When screening for stocks that combine technical strength with accelerating fundamentals, the Mark Minervini Trend Template is one of the most reliable frameworks to start with. This approach, rooted in the methods of two-time U.S. Investing Champion Mark Minervini, uses strict technical criteria to identify stocks in strong, sustained uptrends (Stage 2). It then layers in high-growth fundamental filters to find companies where earnings, sales, and margins are improving—often a precursor to explosive price moves. The stock we are examining today, Keysight Technologies (NYSE:KEYS), has emerged from a screen that applies both the Trend Template and a High Growth Momentum (HGM) rating, making it a candidate worthy of a closer look.
Meeting the Minervini Trend Template
The first hurdle for any stock under this strategy is to pass the technical checklist of the Trend Template. Keysight clears these criteria convincingly, showing a textbook Stage 2 uptrend.
- Moving Averages Alignment: The current price of $346.53 sits well above all key moving averages. The 50-day SMA ($291.55) is above the 150-day ($225.92) and the 200-day ($210.75). Critically, both the 150-day and 200-day SMAs are rising, confirming the long-term trend is healthy.
- 52-Week Position: The stock is currently trading just 0.5% below its 52-week high of $348.43, meeting the requirement of being within 25% of that high. It is also trading 146% above its 52-week low of $140.73, far exceeding the 30% minimum threshold. This is a classic sign of strength.
- Relative Strength: With a ChartMill Relative Strength (CRS) rating of 96.02, Keysight outperforms 96% of all stocks in the market. This high RS score is exactly what Minervini looks for—stocks that are market leaders, not laggards.
The reasoning is clear: strong trends, confirmed by aligned, rising moving averages and high relative strength, suggest that large institutional investors are accumulating the stock. This is exactly the environment where the biggest gains are made.
High Growth Fundamentals
The technical strength is backed by strong fundamental data, which is the second pillar of the Minervini strategy. The stock earns its “High Growth Momentum” designation through a series of accelerating metrics.
- Earnings Acceleration: The reported EPS growth has been steadily accelerating. The most recent quarter (Q2Q) showed 19.2% growth, up from 15.8% in the prior quarter and 9.6% two quarters ago. This pattern of acceleration is a key signal that a company's earnings power is increasing. Furthermore, the next quarter’s EPS estimate is looking at a 38.9% growth, suggesting this momentum is likely to continue.
- Revenue Acceleration: Sales growth tells a similar story. The most recent quarterly revenue growth of 23.3% is a significant jump from 10.3% and 11.1% in the previous two quarters. Like earnings, accelerating revenue is a hallmark of a company gaining market share or entering a new growth cycle.
- Consistent Surprises: The company has beaten both earnings and revenue estimates in each of the last four quarters. This consistency in surprising to the upside builds confidence in the company's execution and outlook.
- Improving Margins: Profit margins are also on an upward trajectory, rising from 14.1% two quarters ago to 17.6% in the most recent quarter. Improving margins indicate that the company is not just selling more, but doing so more efficiently, a strong combination for bottom-line growth.
- Upward Revisions: Analysts have responded positively, with the average EPS estimate for next year being revised up by 9.4% over the last three months. This confirms that the sell-side is catching up to the company's strong performance.
These fundamental traits are precisely what the Minervini strategy seeks. The combination of accelerating earnings and revenue, consistent beats, and improving margins often precedes major price breakouts. The stock is exhibiting the "big earnings attract big attention" dynamics that Minervini discusses.
Assessing the Technical Rating
While the setup for a new entry is not currently ideal, the overall technical health of Keysight is exceptional. According to the ChartMill Technical Report, the stock scores a perfect 10 out of 10 in its technical rating. It outperforms 96% of all stocks on a yearly basis and 86% of its peers in the Electronic Equipment industry. The long-term and short-term trends are both positive, and the stock is currently making new 52-week highs, a very bullish signal. The only caveat from the report is that the Setup Quality score is a 3, meaning the recent price movement has been a bit too volatile to present a low-risk entry point. This suggests that while the stock is a strong long-term hold, investors should look for a period of price consolidation before starting a new position to find the best risk/reward.
Discover More Candidates
Looking for stocks that hold up well in strong trends is a long-term winning strategy. You can find more stocks that match this exact combination of Minervini Trend Template criteria and High Growth Momentum by using our dedicated screener here. Screen and rank these candidates to build a portfolio of market leaders.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always do your own research and consider your own risk tolerance before making any trading decisions.