NLIGHT INC (NASDAQ:LASR) Emerges as a Top Momentum and Growth Stock Candidate

nLIGHT Inc (NASDAQ:LASR) has recently appeared as a notable candidate for momentum and growth-focused investors, particularly those using methods like Mark Minervini’s Trend Template paired with high-growth momentum screening. This method mixes strict technical study with basic growth measurements to find stocks showing both solid price trends and foundational business momentum. The plan focuses on stocks in definite uptrends, trading close to new highs with getting-better fundamentals, traits frequently linked to top-tier market performance.

Technical Strength and Trend Template Alignment

LASR shows a solid technical profile, fitting the main requirements of Minervini’s Trend Template, which is made to identify stocks in clear uptrends with room for more growth. Important technical confirmations include:

• Price Above Key Moving Averages: The present price of $28.87 trades notably above the 50-day ($22.86), 150-day ($14.98), and 200-day ($13.95) simple moving averages, confirming both short and long-term positive momentum.
• Rising Moving Averages: The 50, 150, and 200-day moving averages are all moving up, showing continued buyer interest and trend health.
• Proximity to Highs: LASR is trading within 4% of its 52-week high of $30.00, a trait of strong stocks that frequently keep doing well.
• Significant Advance from Lows: The stock has jumped over 365% from its 52-week low of $6.20, showing a strong rebound momentum and institutional buying.
• Superior Relative Strength: With a relative strength ranking of 97.28, LASR does better than almost all stocks in the market, a sign of industry leadership.

These points fit with Minervini’s view that the top chances often come from stocks displaying health across various periods, holding steady near highs, and showing clear momentum without too much instability.

Growth and Fundamental Momentum

Besides technicals, LASR fits under high growth momentum requirements, with several basic measurements pointing to better business results and analyst positivity:

• Earnings Acceleration: Recent quarterly EPS growth shows major betterment, with the last quarter up 160% year-over-year, and the next quarter predicted to grow by over 106%. This quickening is important, as Minervini notes that earnings beats and changes often come before large price movements.
• Sales Growth Resilience: Quarterly revenue growth has been strong, up 22.22% in the newest quarter, with future predictions pointing to continued growth. Top-line growth is a key part of lasting momentum, as it shows demand and market share increases.
• Positive Estimate Revisions: Analysts have increased next-year EPS predictions by 84% over the past three months, showing rising belief in the company’s profit path. Such changes often draw institutional attention, supporting more price growth.
• Strong Earnings Surprise History: The company has exceeded EPS predictions in three of the last four quarters, with an average beat of 50.09%, showing a capacity to outperform expectations, a feature typical in prosperous growth stocks.

These parts are crucial within growth investing structures, as they indicate not only previous results but also future possibility, lowering the danger of investing in flat or reducing businesses.

Sector and Industry Context

LASR works in the Electronic Equipment, Instruments & Components industry, a part often pushed by new ideas and cyclical demand. The stock’s better performance than 91% of its industry friends highlights its strong market place and chance to gain from wider tech tendencies, like more use of laser tech in industrial and defense uses.

Technical Analysis Overview

According to ChartMill’s technical report, LASR has a perfect technical rating of 10/10, showing outstanding trend health and market-relative performance. The setup rating of 7/10 suggests a consolidation shape near highs, indicating a possible breakout chance. Important technical notes include:

• Support and Resistance: The stock has set support near $25.96 and meets resistance around $29.83. A move above this point could mark the next upward move.
• Bull Flag Pattern: The recent price activity has created a bull flag, a continuation shape often followed by more gains.
• Institutional Interest: Recent volume patterns show buying, with pocket pivot signs showing knowledgeable purchasing.

For a complete technical study, readers can see the full technical report here.

Conclusion

LASR shows a notable case of a stock that fits both momentum and growth investment plans. Its fit with the Trend Template requirements suggests good technical health, while its basic betterments, including earnings growth, positive changes, and industry leadership, appeal to growth-focused investors. As with any investment, proper study is key, but for those following organized methods like Minervini’s, LASR presents a significant chance.

For investors looking for similar high-growth momentum picks, more results can be found using the High Growth Momentum + Trend Template screen.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.