Why Mark Minervini may look into LINCOLN NATIONAL CORP (NYSE:LNC)

In this article we will dive into LINCOLN NATIONAL CORP (NYSE:LNC) as a possible candidate for growth investing. Investors should always do their own research, but we noticed LINCOLN NATIONAL CORP showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Checking the Minervini Trend Template.

LNC checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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)

Exploring LNC's Growth

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. LNC was assigned a score of 4 for growth:

Explosive Earnings Growth

• The EPS of LNC has exhibited growth from one quarter to another (Q2Q), with a 31.72% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• LNC has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 135.0%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• The sales growth of LNC is accelerating: the current Q2Q growth of 135.0% is above the previous quarter Q2Q growth of -38.63%. Sales momentum and acceleration are key for high growth systems.
• With impressive 1-year revenue growth of 47.65%, LNC showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, LNC showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Financial Strength & Profitability

• With positive growth in its operating margin over the past year, LNC showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• With a solid Return on Equity (ROE) of 38.57%, LNC exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• A Debt/Equity ratio of 0.71 indicates that LNC is leveraging debt effectively without excessive risk.

Market Strength & Institutional Confidence

• With institutional shareholders at 75.9%, LNC demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• The Relative Strength (RS) of LNC has been consistently solid, with a current 88.92 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How do we evaluate the setup for LNC?

ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, LNC has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, LNC also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 39.10. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 36.62, a Stop Loss order could be placed below this zone.

For an up to date full technical analysis you can check the technical report of LNC

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.