Applying Mark Minervini’s growth stock checklist to LIBERTY BROADBAND-A (NASDAQ:LBRDA)

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

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for LBRDA:

• ✔ 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)

Why NASDAQ:LBRDA may be interesting for high growth investors.

Earnings Momentum

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), LBRDA highlights its ability to generate increasing profitability, showcasing a 46.76% growth.
• Over the past year, LBRDA has demonstrated 30.19% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• LBRDA shows accelerating EPS growth: when comparing the current Q2Q growth of 46.76% to the previous year Q2Q growth of -35.35%, we see the growth rate improving.

Financial Strength & Profitability

• LBRDA has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• The free cash flow (FCF) of LBRDA has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• At a Debt/Equity ratio of 0.41, LBRDA seems well-positioned to sustain growth while keeping debt in check.

Institutional Confidence & Market Strength

• With 84.65% of the total shares held by institutional investors, LBRDA showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• LBRDA has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 93.32 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. LIBERTY BROADBAND-A is well-positioned for potential price growth opportunities.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:LBRDA scores a 4 out of 10:

Although LBRDA has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our latest full technical report of LBRDA contains the most current technical analsysis.

Concluding

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.