NATIONAL FUEL GAS CO (NYSE:NFG) Fits Mark Minervini Trend Template with Strong Growth Momentum

NATIONAL FUEL GAS CO (NYSE:NFG) has recently appeared as a possible choice for investors using the Mark Minervini Trend Template strategy, along with high growth momentum screening. The Minervini method looks for stocks showing strong technical trends and solid fundamental growth, confirming they are in a Stage 2 uptrend with improving earnings and revenue. This approach selects stocks that not only fit strict technical standards but also show strong business performance, important for growth-focused investors looking for top performers.

Why NFG Matches the Minervini Trend Template

The Minervini Trend Template needs stocks to meet several technical conditions to confirm a strong uptrend. Here’s how NFG fits these requirements:

1. Price Above Key Moving Averages

   • Current price ($87.78) is higher than the 50-day SMA ($85.50), 150-day SMA ($78.94), and 200-day SMA ($74.53).
   • The 50-day SMA is above both the 150-day and 200-day SMAs, showing positive momentum.

2. Upward-Sloping Moving Averages

   • The 200-day SMA is increasing, confirming a long-term uptrend.
   • The 150-day SMA is also moving higher, indicating strength.

3. Price Relative to 52-Week High/Low

   • NFG is trading within 2.3% of its 52-week high ($89.82), a sign of strong momentum.
   • The stock is up 48.6% over the past year, well above the 30% threshold from its 52-week low ($58.32).

4. Strong Relative Strength

   • NFG’s relative strength (RS) ranking is 86.3, meaning it beats 86% of all stocks—a key Minervini requirement for leading stocks.

High Growth Momentum Fundamentals

Beyond technicals, NFG shows strong growth metrics that fit high-growth momentum investing:

• Earnings Growth Acceleration

  • Quarterly EPS growth (Q2Q) jumped 65.7% in the most recent quarter, a sharp rise from prior quarters (33.5%, 13.7%, and -1.3%).
  • Annual EPS growth (TTM) is 28.7%, showing better profitability.

• Revenue Expansion

  • Quarterly revenue grew 27.4% year-over-year, faster than previous quarters (15.9%, 4.6%, 0.9%).
  • Full-year revenue (TTM) rose 12.4%, reflecting steady demand.

• Profit Margins & Revisions

  • Recent quarterly profit margin was 28.2%, up from prior quarters (29.6%, 8.2%).
  • While next-year EPS estimates saw a small downward revision (-0.3%), sales growth expectations remain steady.

Technical Analysis Summary

According to ChartMill’s technical report, NFG scores a perfect 10/10 on technical health, with both short- and long-term trends positive. Key points:

• Support & Resistance

  • Strong support levels between $84.94–$87.54 (moving averages & trendlines).
  • Immediate resistance near $89.17, a breakout above which could signal more gains.

• Consolidation & Breakout Potential

  • NFG has been trading in a tight range ($85.16–$89.38), showing lower volatility—a key feature of Minervini’s Volatility Contraction Pattern (VCP).
  • A move above $89.18 could trigger a breakout, with a stop-loss suggested below $85.15 (4.5% risk).

Final Thoughts

NFG presents a strong case for growth-focused investors using the Minervini strategy. Its solid technical setup, along with improving earnings and revenue, makes it a potential leader in the Gas Utilities sector (outperforming 92% of peers).

For more stocks meeting similar high-growth momentum and trend criteria, check the High Growth Momentum + Trend Template screen.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management strategies before trading.