Newmark Group Inc. (NASDAQ:NMRK) Passes Minervini Trend Template with Strong Growth Momentum

In growth investing, joining a solid technical system with firm fundamental momentum can be an effective method for spotting possible leading stocks. One example of this is the use of Mark Minervini’s Trend Template alongside an emphasis on strong-growth fundamentals. The Trend Template offers a structured, technical list to verify a stock is in a definite, continuing upward trend, sorting out poor or consolidating securities. When this technical condition is combined with quickening earnings, revenue expansion, and favorable estimate changes—key features of strong-growth momentum—it forms a precise filter for stocks that are both trending positively and have the support of getting better business results. This two-part method aims to find companies in the initial or middle parts of a major price increase, helped by both price patterns and company results.

Newmark Group Inc - Class A (NASDAQ:NMRK) recently was found by a filter made to locate such prospects, satisfying the strict requirements of both the Minervini Trend Template and a strong growth momentum score.

Reviewing the Technical Trend

For a stock to pass under Minervini’s Trend Template, it must meet a set of moving average and price performance rules made to confirm a stock is in a firm, clear upward trend. These conditions are important because they help investors steer clear of buying during sharp declines or false recoveries, concentrating instead on securities where the direction is clearly upward.

A check of NMRK’s main metrics shows it matches several central parts of the template:

• Price vs. Long-Term Averages: The stock’s last price of $17.36 trades above its rising 200-day simple moving average (SMA) of $15.01 and its 150-day SMA of $16.30. This placement shows a positive long-term trend is in place.
• Moving Average Order: The 50-day SMA ($17.25) is above both the 150-day and 200-day averages, and the 150-day SMA is above the 200-day SMA. This order of shorter-term averages above longer-term ones is a typical signal of building momentum across different periods.
• Nearness to Highs: NMRK’s current price is within 25% of its 52-week high of $19.84, a rule that directs focus to market leaders, not weaker performers. Also, the price is about 80% above its 52-week low of $9.65, showing a major recovery trend is already in progress.
• Relative Strength: With a ChartMill Relative Strength (CRS) score of 83.23, the stock does better than more than 83% of the market. High relative strength is a key part of the Minervini method, as it finds securities that are wanted and driving the market upward, even when the wider market is uncertain.

Examining the Growth Momentum

While a firm price chart is necessary, the Minervini method also places high importance on the fundamental reason—the "why" behind the price movement. The strong growth momentum filter looks at recent financial performance to find companies with quickening business trends, which often come before or along with major price moves.

Newmark’s recent financial reports show a number of positive growth signs:

• Earnings Speed: The company has reported large year-over-year earnings per share (EPS) growth in recent quarters, with the latest quarter up 27.3% and the quarter before showing a 40.9% rise. This sequence of increasing growth is a main quality looked for by growth investors.
• Steady Earnings Surprises: NMRK has surpassed analyst EPS estimates in each of the past four quarters, with an average surprise of over 11%. This steady better-than-expected performance implies management is doing better than planned, often resulting in positive estimate changes.
• Firm Sales Growth: Revenue growth has been solid, with the last quarter up 25.9% year-over-year. Revenue increase gives a good base for earnings growth and points to healthy demand for the company’s commercial real estate services.
• Favorable Estimate Changes: Analysts have been increasing their projections, with the average estimate for next year’s EPS moved up by 2.7% over the past three months. Upward changes are a strong fundamental driver, as they show growing belief in the company’s future earnings and can draw institutional interest.

Technical Position and Risk Points

According to ChartMill’s own technical report, NMRK shows an notable position for traders. The stock gets a good Setup Quality rating of 9, meaning it is moving in a fairly narrow band after its earlier rise—a formation that can come before a new upward move. The report points out a recent "pocket pivot" signal, which is a volume-based sign suggesting buying interest.

However, the total Technical Rating is a 6, showing a varied short-term view. The long-term trend is scored as positive, but the short-term trend is neutral. The stock meets close resistance near $17.79, with a more important resistance area between $19.48 and $19.58. For support, levels are seen around $17.04-$17.32 and lower near $16.42-$16.59.

This technical view implies that while the longer-term direction and growth fundamentals are positive, the stock might need to clearly move past overhead resistance to start a new continued upward trend. For a complete look at the support, resistance, and trade position, you can see the full technical analysis report for NMRK.

Locating Comparable Prospects

The joining of Minervini’s trend rules and strong-growth fundamental filters can methodically find possible investment candidates. NMRK is one instance that currently passes this multi-factor filter.

For investors wanting to use this method to find other stocks that meet both firm technical and strong-growth fundamental rules, you can investigate and adjust the filter yourself. Click here to access the "High Growth Momentum + Trend Template" screen on ChartMill.

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Disclaimer: This article is for informational and educational purposes only. It is not a recommendation to buy or sell any security. The analysis is based on data provided and certain screening criteria; it does not constitute investment advice. Always conduct your own due diligence, consider your financial situation and risk tolerance, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Please read our full disclaimer here.