In growth investing, joining a solid technical system with firm fundamental momentum can be an effective way to spot possible leading stocks. One organized technique for this is joining Mark Minervini’s Trend Template with a High Growth Momentum (HGM) filter. The Trend Template gives a fixed group of technical rules meant to find stocks in clear, strong uptrends, concentrating on price level compared to important moving averages, nearness to new highs, and better relative strength. Adding a high growth rating makes sure these technically good companies are also showing the fundamental quickening in earnings and sales that usually supports continued, sharp price gains. This two-part method tries to locate companies where firm price movement is backed by getting better business results.
Modine Manufacturing Co (NYSE:MOD) appears as a present example that fits this joined plan. The Wisconsin-based thermal management company, working in Climate Solutions and Performance Technologies, has had its stock price go through a major revaluation.
Fit with the Minervini Trend Template
The center of Minervini’s system is the Trend Template, a list that sorts for stocks showing clear technical strength. MOD at this time meets these key rules, which are made to guarantee an investor is only involved in clear, long-term uptrends.
- Price Above Key Moving Averages: The stock is trading notably above its 150-day ($142.06) and 200-day ($130.16) simple moving averages (SMAs). This is a main rule, showing the long-term trend is clearly positive.
- Upward-Sloping Averages: Both the 150-day and 200-day SMAs are increasing, confirming continued upward momentum over many months.
- Bullish Moving Average Arrangement: The nearer-term 50-day SMA ($151.31) is located above both the 150-day and 200-day SMAs. This order, with shorter averages above longer ones, is a standard sign of a sound, speeding up uptrend.
- Nearness to Highs: MOD’s present price is inside 25% of its 52-week high of $224.70, meeting the template’s choice for stocks showing strength, not bouncing back from large lows. Actually, the stock is at this time testing that high.
- Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 96.92, MOD is doing better than almost 97% of all stocks in the market. Minervini stresses that real market leaders have high relative strength, often in the 80s or 90s, as it shows institutional interest and industry leadership.
This technical view shows MOD as a stock in a strong Stage 2 climb, the exact stage where Minervini’s plan aims to take part.
Fundamental Momentum and Growth Traits
While the Trend Template finds the "how," the High Growth Momentum rating tries to explain the "why" behind the price move. MOD’s recent fundamental results indicate the technical breakout is supported by real business gain, a key part of Minervini’s SEPA (Specific Entry Point Analysis) plan which connects price strength to fundamental drivers.
- Earnings Quickening: The company has shown notable earnings momentum. Year-over-year EPS growth for the last reported quarter was about 29.3%, a marked quickening. Also, MOD has topped analyst EPS estimates in each of the last four quarters, with an average beat of over 12%.
- Firm Sales Growth: Revenue growth has also been solid, with the last quarter showing a 30.5% rise year-over-year. This top-line strength gives a good base for bottom-line growth.
- Growing Profitability: The company’s profit margin in the last reported quarter was 6.0%. More significantly, analysts have changed their earnings estimates for the next year higher by about 0.57% over the last three months, showing increasing belief in the company’s future profitability.
- Industry Leadership: Inside the Building Products field, MOD’s relative strength score shows it is doing better than 100% of its peers. This industry leadership is another feature Minervini searches for, as money moves to the strongest companies in strong sectors.
These points add to a strong growth story, suggesting the stock’s technical rise is not only speculative but backed by getting better operating results.
Technical Condition and Present Pattern
ChartMill’s own technical study gives a short summary of MOD’s position. The stock gets a perfect Technical Rating of 10/10, showing very good condition across short and long-term periods. The report states the stock is in a clear positive trend, is a top market performer, and is seeing helpful volume on its upward moves.
However, the Setup Quality Rating is at this time a 3/10. This is a key difference. While the technical condition is very good, the report shows the recent price jump has been unstable, making it hard to find a low-risk, standard consolidation-based entry point common to Minervini’s Volatility Contraction Pattern (VCP). The study proposes waiting for a time of consolidation to form a clearer support level and a more certain breakout point. This points out the controlled next step after a filtering process: manual chart inspection to find the best, low-risk entry.
You can see the complete, full technical study on MOD’s own Technical Report page.
Locating Comparable Possibilities
MOD gives an example in a stock that fits the ideas of momentum and growth investing by meeting both strict technical and fundamental filters. For investors wanting to use this joined Minervini Trend Template and High Growth Momentum system to find other possible examples, a ready-made filter is accessible.
➡️ Find more stocks that meet these rules by using the High Growth Momentum + Trend Template filter.
Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. All investing and trading includes risk, and readers should do their own study and talk with a qualified financial advisor before making any investment choices. Past results are not a sign of future outcomes.
