STRIDE INC (NYSE:LRN): A Strong Momentum Stock Matching Minervini’s Trend Model
Mark Minervini’s trend-based strategy identifies stocks with solid technical and fundamental traits, confirming they are in a clear uptrend with growing momentum. The method uses technical checks—like moving averages, relative strength, and price trends—along with fundamental momentum filters to find high-potential stocks. STRIDE INC (NYSE:LRN) stands out as a stock that fits this model, displaying both a strong technical pattern and solid growth fundamentals.
How LRN Matches the Minervini Trend Model
The Trend Model requires stocks to meet specific technical conditions to confirm a steady uptrend. Here’s how LRN measures up:
-
Price Above Key Moving Averages:
- Current price ($144.05) is above the 50-day SMA ($139.10), 150-day SMA ($135.13), and 200-day SMA ($126.39).
- The 200-day SMA is rising, a sign of long-term stability.
-
Relative Strength:
- LRN’s relative strength (RS) score of 87.82 puts it in the top 13% of all stocks, showing strong performance.
-
Price Compared to 52-Week Range:
- Trading at 144.05, LRN is 128% above its 52-week low ($63.25) and within 11% of its 52-week high ($162.30), fitting Minervini’s preference for stocks near highs.
-
Volume Trends:
- Recent trading volume has been higher, indicating institutional interest—a positive signal for continued momentum.
Strong Growth Fundamentals
Beyond technicals, Minervini highlights earnings and revenue growth. LRN’s fundamentals support its momentum:
-
Earnings Growth:
- EPS Growth (TTM): +55.9% YoY
- Quarterly EPS Growth (Q2Q): +61.3% (vs. same quarter prior year)
- Consistent beats: 3 of last 4 quarters surpassed EPS estimates by an average of 86.2%.
-
Revenue Growth:
- Latest Quarterly Sales Growth: +22.4% YoY
- Revenue forecasts have been raised, with next-year sales growth expected at +8.7%.
-
Profit Margin Improvement:
- Latest quarter profit margin: 16.2%, up from 7.4% two quarters prior, showing better efficiency.
Technical View & Key Levels
The ChartMill Technical Report gives LRN a technical rating of 7/10, reflecting its steady trend but noting recent sideways movement. Key points:
- Support Areas:
- Main support at $128.22,$129.25 (where trendlines meet).
- Secondary support at $77.43 (long-term weekly trend).
- Resistance:
- Near-term resistance at $159.56,$160.73.
- Setup Quality:
- Current setup rating is 2/10, suggesting volatility makes an ideal entry less obvious. Traders may wait for a tighter pattern before entering.
Final Thoughts: A Growth Leader in Education Tech
STRIDE INC (NYSE:LRN) fits Minervini’s strategy by combining a steady uptrend with rising earnings and revenue growth. While recent volatility calls for patience, its strong relative strength and fundamental momentum make it a stock to watch for growth-focused investors.
Find More High-Growth Momentum Stocks
For other stocks meeting Minervini’s Trend Model and growth criteria, check our High Growth Momentum + Trend Model Screen.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.
