STRIDE INC (NYSE:LRN) Fits Minervini’s Trend Model with Strong Momentum and Growth Fundamentals

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.