In the field of growth investing, merging a strict technical system with attention to fundamental momentum can be an effective method for spotting possible leaders. One technique that shows this is the strategy made known by trader Mark Minervini. His method depends on the "Trend Template," a group of technical rules meant to find stocks in clear, forceful uptrends. This is combined with a hunt for firms displaying solid and quickening fundamental growth, specifically earnings and sales momentum, to confirm the price strength is supported by better business results. A stock that appears from a scan mixing these two strict filters justifies more examination from growth-focused investors.
Laureate Education Inc (NASDAQ:LAUR) is one example that now satisfies the technical standard defined by the Minervini Trend Template. This template is not a loose idea but a fixed list; a stock must satisfy every rule to be viewed as technically acceptable for the strategy. The aim is to find securities that are not only increasing, but are in a verified, multi-timeframe uptrend with solid comparative performance.
Technical Fit with the Minervini Trend Template
An examination of Laureate Education's chart and main measures shows it meets the necessary parts of the Trend Template:
- Trading Above Important Averages: The stock's present price is located above its increasing 50-day, 150-day, and 200-day simple moving averages (SMAs). This arrangement shows continued buying interest across short, intermediate, and long-term periods.
- Moving Average Arrangement: The quicker 50-day SMA ($34.10) trades above both the 150-day ($31.95) and 200-day ($29.95) averages, while the 150-day SMA is also above the 200-day. This "ordered" formation is a typical sign of a sound, speeding uptrend.
- Nearness to Highs: A central idea of the Minervini method is to concentrate on strength, not weakness. LAUR's price is about 95% above its 52-week low and less than 8% from its 52-week high, showing it is part of the market's leading group instead of bouncing back from large declines.
- Better Comparative Strength: Maybe most importantly, the stock has a ChartMill Comparative Strength (CRS) score of 88.21. This indicates it is doing better than almost 90% of the whole market. Minervini states that the largest gainers usually display high comparative strength early in their advances, as it points to institutional buying and market leadership.
Fundamental Momentum for Growth Investors
While the Trend Template makes sure a stock is in the correct technical state, the "High Growth Momentum" part of the scan aims to confirm that the price trend is helped by underlying business speed. This is important because lasting rallies are frequently driven by bettering fundamentals that draw ongoing investor attention. For LAUR, several data points are notable:
- Solid Latest Earnings Growth: The company's most recent quarterly earnings per share (EPS) increased by 88.7% versus the same quarter last year. This type of fast quarterly growth is a main driver that can push and maintain a strong price trend.
- Positive Sales Path: Revenue growth has also been firm, with the last quarter showing a 27.9% year-over-year rise. Also, analysts have become more positive about what is ahead, increasing their next-year revenue forecasts by more than 4% in the past three months.
- Cash Flow Production: The company's free cash flow per share has increased by over 63% in the trailing twelve months, showing sound operational condition and the chance for planned reinvestment or shareholder benefits.
- Earnings Ability: Despite some changes in recent quarters, the yearly profit margin stays good, and the most recent quarter showed a large improvement to 31.7%.
These elements join to create an image of a company not simply following a market trend, but one where operational results are giving a fundamental reason for the stock's technical strength.
Technical Condition and Formation Evaluation
Beyond the fixed Trend Template, a wider technical study of LAUR supports its solid position. Based on ChartMill's own scoring system, the stock receives a high Technical Score of 9 out of 10, reflecting very good overall technical condition across several parts including trend, volume, and momentum. The long-term trend is scored as positive.
Also, the study finds a positive trading formation, with a Formation Quality score of 8. The stock has been moving in a band between about $31 and $36 over the past month, forming a base after its earlier rise. The technical report notes clear support near the $34.36 level and resistance just above $35.48. For traders using a breakout method, a move above this resistance area on high volume could indicate the next phase of the uptrend. A complete list of the support, resistance, and possible trade planning levels is in the full ChartMill Technical Report for LAUR.
Conclusion
Laureate Education Inc offers a strong example of a stock that fits a strict growth and momentum strategy. It meets the strict technical filters of the Minervini Trend Template, verifying it is in a solid, leading-position uptrend. At the same time, its fundamental picture shows the type of high-growth momentum, especially in recent quarterly earnings and sales, that can supply the energy for a continued rise. While the wider market trends are now negative, LAUR's high comparative strength shows it is resisting that softness, a trait often observed in early market leaders.
For investors looking to find other possible choices that meet this mix of technical skill and growth momentum, the scanning method that found LAUR can be examined more. You can see the present outcomes and rules of the 'High Growth Momentum + Trend Template' scan by using this link: View the Scanning Results.
Disclaimer: This article is for informational and educational purposes only. It is not intended as investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis is based on data provided and certain scanning methods, which have inherent limits. Investors should do their own complete research, think about their personal financial situation, and talk with a qualified financial advisor before making any investment decisions. Past performance is not a guide to future results.