Nutanix Inc (NASDAQ:NTNX) Emerges as a Strong Contender for Minervini’s Trend Strategy and High-Growth Momentum Investing

NUTANIX INC - A (NASDAQ:NTNX) has been recognized as a potential fit for both Mark Minervini’s trend-based strategy and high-growth momentum investing. The selection method blends Minervini’s detailed Trend Template, a structured way to find stocks in strong upward trends, with a High Growth Momentum (HGM) rating of at least 4, confirming the stock displays both technical and fundamental growth qualities.

Minervini’s approach focuses on stocks with clear upward movement, solid relative performance, and patterns that present good risk-reward opportunities. The HGM rating selects companies with rising earnings, increasing revenue, and better profit margins, which are important for long-term stock success.

Why Nutanix Matches the Minervini Trend Template

Nutanix aligns with key parts of Minervini’s Trend Template, which looks for stocks in clear upward trends:

• Price Above Key Moving Averages: The stock is above its 50-day ($75.70), 150-day ($70.87), and 200-day ($69.75) moving averages, showing a positive long-term trend.
• Rising Moving Averages: The 150-day and 200-day MAs are increasing, indicating continued upward movement.
• Relative Strength: With a ChartMill Relative Strength (CRS) score of 88, Nutanix performs better than 88% of all stocks, a sign of market leadership.
• Price Near 52-Week High: At $76.75, the stock is within 8% of its 52-week high ($83.36), reflecting strong movement.
• Consolidation Pattern: Recent price activity shows a narrow range between $71.72 and $77.61, forming a possible Volatility Contraction Pattern (VCP), a setup Minervini prefers for lower-risk entries.

These technical features match Minervini’s idea of trading stocks in Stage 2 upward trends, where the biggest gains often happen.

High Growth Momentum Fundamentals

Beyond technicals, Nutanix shows strong growth numbers that attract momentum investors:

• Earnings Growth:
  • EPS grew 31.5% YoY (TTM) and sped up in recent quarters, with Q2Q growth of 50% in the latest quarter.
  • The company has exceeded EPS estimates in all of the last four quarters, with an average surprise of 22.5%.
• Revenue Growth:
  • Revenue rose 16.1% YoY (TTM), with the latest quarter showing 21.8% growth.
  • Like earnings, revenue has consistently beaten expectations, with four straight beats.
• Profit Margin Improvement:
  • Quarterly profit margins increased from 5.06% two quarters ago to 9.92% in the most recent report, showing better efficiency.
• Free Cash Flow Jump:
  • Free cash flow per share climbed 315% YoY to $2.86, indicating strong cash generation.

These fundamentals suggest Nutanix is not only technically strong but also backed by better profitability and scalable growth, a key part of high-growth investing.

Technical Breakout Possibility

The ChartMill Technical Report gives Nutanix a technical rating of 8/10 and a setup rating of 8/10, noting its consolidation near resistance at $78.34. A move above this level could signal further gains, with support near $74.36–$75.70 providing a logical stop-loss area.

Key points from the report:

• The stock is near the top of its recent range, with little resistance above.
• A recent Pocket Pivot signal, a bullish volume/price pattern, suggests institutional buying.
• The S&P 500’s positive trend (both short- and long-term) supports further upside.

Conclusion

Nutanix offers a strong case for both trend followers and growth investors. Its alignment with Minervini’s Trend Template highlights its technical strength, while rising earnings and cash flow growth back its fundamental appeal. The stock’s consolidation near resistance presents a possible breakout chance, with clear risk levels.

For investors looking for similar high-growth, technically sound stocks, the High Growth Momentum + Trend Template screen can find other candidates meeting these standards.

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.