LIFEMD INC (NASDAQ:LFMD) has emerged as a compelling candidate for investors following the Minervini Trend Template and seeking high-growth momentum. The stock meets key technical criteria while also displaying strong fundamental growth metrics, making it worth a closer look.
Why LFMD Fits the Minervini Trend Template
Mark Minervini’s strategy emphasizes stocks in strong uptrends with clear technical strength. LFMD checks several critical boxes:
Price Above Key Moving Averages: The stock is trading well above its 50-day ($6.29), 150-day ($5.75), and 200-day ($5.63) moving averages, confirming a bullish trend.
Upward-Sloping Averages: Both the 150-day and 200-day moving averages are trending upward, reinforcing long-term strength.
Relative Strength: With a ChartMill Relative Strength score of 95.14, LFMD outperforms 95% of all stocks, a hallmark of market leadership.
Near 52-Week High: The stock is trading within 2.5% of its 52-week high ($10.99), indicating strong momentum.
High Growth Momentum Fundamentals
Beyond technicals, LFMD exhibits accelerating growth, a key factor for high-growth investors:
Revenue Growth: Quarterly sales growth stands at 48.8% year-over-year, with TTM revenue up 43.1%.
Earnings Expansion: EPS grew 105.3% in the latest quarter, with analysts revising next-year EPS estimates upward by 35% over the past three months.
Profitability Improvement: The company’s profit margin improved to 92.6% in the most recent quarter, reflecting strong cost management.
LFMD’s technical rating of 10/10 reflects its strong uptrend, but the setup rating of 2 suggests waiting for a consolidation before entry. The stock has surged nearly 97% in the past month, so a pullback could offer a better risk-reward opportunity.
This is not investing advice. The article highlights observations at the time of writing, but investors should conduct their own analysis before making decisions.