MACOM TECHNOLOGY SOLUTIONS H (NASDAQ:MTSI) – A Strong Growth Candidate Meeting Minervini’s Criteria

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.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and momentum characteristics.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making any investment decisions.