The selection of promising growth stocks often involves combining rigorous technical analysis with fundamental momentum screening. One systematic approach used by traders is the Mark Minervini strategy, which uses a specific Trend Template to find equities in strong uptrends, supplemented by fundamental filters to find companies showing high growth momentum. This methodology focuses on stocks showing superior price strength, aligned moving averages, and proximity to new highs, while also requiring strong sales and earnings expansion. By merging these technical and fundamental disciplines, the strategy tries to capture leaders early in their growth cycles.
Technical Strength and Trend Template Alignment
Liquidia Corp (NASDAQ:LQDA) presents a strong case from a technical perspective, as it currently meets the core parts of the Minervini Trend Template. This framework is made to filter for stocks showing powerful, established uptrends, and LQDA's price action fits with these requirements.
Key technical criteria met by LQDA include:
- The current price trades above its rising 50-day, 150-day, and 200-day simple moving averages.
- The 50-day moving average is positioned above both the 150-day and 200-day averages, confirming bullish alignment across timeframes.
- The current price is more than 30% above its 52-week low and is trading within 25% of its 52-week high, indicating strong momentum.
- The stock has a high relative strength (RS) ranking of about 97, meaning it has done better than most of the market.
This technical setup is important to the Minervini strategy because it systematically finds securities that are not just rising, but are doing so with sustained momentum and institutional support, often before they make their most significant price increases.
Fundamental Momentum and Growth Drivers
Beyond its technical strength, LQDA qualifies for high-growth investing based on its explosive fundamental momentum. The company, which focuses on developing treatments for rare cardiopulmonary diseases, is showing notable traction in its financial performance.
Notable growth metrics include:
- Explosive Revenue Growth: The company has reported a trailing twelve-month revenue growth of over 343%. Most recently, quarterly sales increased by an extraordinary 1,121% compared to the same quarter last year.
- Earnings Improvement: While the company is not yet profitable on a net income basis, its EPS growth on a quarter-over-quarter basis was 87%, showing a quick improvement in its bottom-line path.
- Analyst Optimism: Revenue estimates for the next year have been revised upward by more than 80% over the last three months, reflecting increasing analyst confidence in the company's commercial prospects, likely connected to its lead product candidate, YUTREPIA.
For growth investors, these figures are not just abstract numbers; they represent a fundamental catalyst. The Minervini strategy states that "big earnings attract big attention," and in this case, huge revenue growth acts as a strong draw for institutional capital, which in turn can support further price gains.
Technical Health Overview
A review of the detailed technical report for LQDA gives the stock a top rating of 10 out of 10, reflecting very good technical health. The report notes that both short-term and long-term trends are positive, and the stock's performance over the past year has consistently been better than 96% of the market. While the setup quality is currently rated medium due to recent price volatility suggesting a period of consolidation may be wise, the basic technical strength remains clear. The analysis also finds several key support levels, providing clear reference points for risk management.
Discover More High-Growth Candidates
LQDA was found using a targeted screen that combines the Minervini Trend Template with a High Growth Momentum rating. For investors looking for other opportunities that meet this strict mix of technical and fundamental criteria, you can view the full and updated screening results here: High Growth Momentum + Trend Template Screen.
Disclaimer: This article is for informational and educational purposes only and is not intended as investment advice. The analysis does not constitute a recommendation to buy, sell, or hold any security. All investing involves risk, including the possible loss of principal. Please conduct your own research and consult with a qualified financial advisor before making any investment decisions.
