Evaluating LIFE TIME GROUP HOLDINGS INC (NYSE:LTH) using Mark Minervini’s winning stock formula

Our stock screener has spotted LIFE TIME GROUP HOLDINGS INC (NYSE:LTH) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

LTH passes the Minervini Trend Template check!

LTH 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)

Why LTH may be interesting for high growth investors.

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. LTH was assigned a score of 6 for growth:

Explosive Earnings Growth

• LTH has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 41.67% increase. This indicates improving financial performance and the company's effective management of its operations.
• Over the past year, LTH has demonstrated 90.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• 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 40.06% 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

• With a favorable trend in its operating margin over the past year, LTH demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• In the past year LTH has expanded its Profit Margin, which demonstrates increasing profitability.
• 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.
• At a Debt/Equity ratio of 0.59, LTH seems well-positioned to sustain growth while keeping debt in check.

Market Strength

• LTH has achieved an impressive Relative Strength (RS) rating of 98.18, showcasing its ability to outperform the broader market.

Looking at the Setup

The Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For LTH this score is currently 5:

Besides having an excellent technical rating, LTH also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 28.01, 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 LTH

Concluding

It looks like LIFE TIME GROUP HOLDINGS INC meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.