MACOM TECHNOLOGY SOLUTIONS H (NASDAQ:MTSI) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company’s strong technical setup and accelerating fundamentals make it a compelling candidate for growth-focused investors.
Why MTSI Fits the Minervini Trend Template
The Minervini Trend Template is designed to identify stocks in strong uptrends with favorable risk/reward setups. MTSI meets all key criteria:
Price Above Key Moving Averages: The stock is trading above its 50-day ($128.84), 150-day ($122.49), and 200-day ($122.10) moving averages, confirming a bullish trend.
Upward-Sloping Averages: The 50-day MA is above both the 150-day and 200-day MAs, while the 150-day MA is above the 200-day MA—a sign of sustained momentum.
Strong Relative Strength: With a ChartMill Relative Strength score of 88.58, MTSI outperforms nearly 89% of the market.
Price Near 52-Week High: At $137.30, MTSI is within 10% of its 52-week high ($152.50) and well above its 52-week low ($84.00).
Growth Fundamentals Supporting the Case
Beyond technical strength, MTSI exhibits strong earnings and revenue growth:
Earnings Growth (TTM): EPS surged 33.6% year-over-year, with recent quarterly growth accelerating to 44.1%.
Revenue Growth (TTM): Sales increased 32.6% YoY, with recent quarters showing consistent expansion (30.2% last quarter).
Profit Margins Improving: The latest quarterly profit margin stands at 13.4%, up from 10.5% a year ago.
Analyst Upgrades: EPS estimates for next year have been revised upward by 0.66% over the past three months, while revenue estimates rose 3.0%.
Technical Analysis Summary
According to ChartMill’s technical report, MTSI scores a 9 out of 10 on both technical health and setup quality. Key takeaways:
Strong Uptrend: Both short-term and long-term trends are positive.
Consolidation Opportunity: The stock has been trading in a range between $129.10 and $144.15, offering a potential entry point.
Support Levels: Key support lies at $136.19, providing a clear stop-loss level.
Institutional Interest: Large players have shown buying interest recently, reinforcing bullish sentiment.