Does LIFE TIME GROUP HOLDINGS INC (NYSE:LTH) meet the Minervini criteria?

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if LIFE TIME GROUP HOLDINGS INC (NYSE:LTH) is suited for growth investing. Investors should of course do their own research, but we spotted LIFE TIME GROUP HOLDINGS INC showing up in our Minervini growth screen, so it may be worth spending some more time on it.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for LTH:

• ✔ 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)

Unpacking LTH's High Growth Momentum Rating

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. LTH has earned a 5:

Earnings Momentum

• In the most recent financial report, LTH reported a 41.67% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• LTH has experienced 90.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• LTH has demonstrated strong q2q revenue growth of 18.69%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• Accelerating Sales growth for LTH: the current Q2Q growth of 18.69% exceeds the previous quarter Q2Q growth of 18.46%.
• Analysts' average next Quarter EPS Estimate for LTH has witnessed a 38.61% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.
• LTH has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Profitability & Financial Strength

• LTH has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• LTH has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• The free cash flow (FCF) of LTH has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• A Debt/Equity ratio of 0.59 suggests that LTH is managing its debt levels responsibly.

Market Strength

• The Relative Strength (RS) of LTH has been consistently solid, with a current 97.26 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How do we evaluate the setup for LTH?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. LTH scores a 8 out of 10:

Besides having an excellent technical rating, LTH also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 29.31, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our latest full technical report of LTH contains the most current technical analsysis.

More like this

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Keep in mind

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.