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.

Does LTH pass 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)

Looking into the high growth metrics of LTH

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. LTH has achieved a 5 out of 10:

Explosive Earnings Growth

• The quarterly earnings of LTH have shown a 41.67% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• Over the past year, LTH has demonstrated 90.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 18.69%, LTH showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• The sales growth of LTH is accelerating: the current Q2Q growth of 18.69% is above the previous quarter Q2Q growth of 18.46%. Sales momentum and acceleration are key for high growth systems.
• LTH has seen a 21.21% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• LTH has surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Profitability & Financial Strength

• LTH has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• In the past year LTH has expanded its Profit Margin, which demonstrates increasing profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, LTH demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• With a Debt/Equity ratio of 0.59, LTH maintains a solid financial position with controlled leverage.

Strong Market Performance

• LTH has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 97.42 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Why is LTH a 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 3:

Although LTH has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Check the latest full technical report of LTH for a complete technical analysis.

More like this

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.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.