NUTEX HEALTH INC (NASDAQ:NUTX) Emerges as a High-Growth Momentum Stock Meeting Minervini's Trend Template

In the world of growth investing, combining a strict technical system with a focus on strong fundamental performance can be a solid method for finding possible leaders. This method is shown by strategies that join Mark Minervini's Trend Template, a step-by-step checklist for seeing stocks in clear, strong uptrends, with a close study of high-growth momentum fundamentals. The aim is to find companies that are not only showing good price momentum and institutional support on the charts but are also proving faster business growth through sales, earnings, and profit margins. A stock that meets both groups of conditions may show a meeting of technical health and fundamental force, placing it for ongoing leadership.

NUTEX HEALTH INC (NASDAQ:NUTX) appears as a candidate that needs a more detailed view through this combined lens. The Houston-based healthcare facility operator has gained notable market notice with a very large price performance over the last year. A look at its technical state and business numbers shows why it was found by a screen looking for high-growth momentum stocks that also meet the strict needs of the Minervini Trend Template.

Technical Health: Following the Trend Template

Mark Minervini's Trend Template is made to filter for stocks in a clear "Stage 2" rise, staying away from downtrends and flat markets. It stresses agreement across several timeframes and nearness to new highs, making sure an investor is buying into shown strength. NUTX at this time shows a clear agreement with these ideas:

• Trend Agreement: The stock is trading well above all its main simple moving averages (SMAs). With a last price of $166.84, it sits above the rising 50-day ($129.22), 150-day ($117.01), and 200-day ($111.53) SMAs. Importantly, the 50-day SMA is above the 150-day, which is above the 200-day, confirming the bullish order Minervini needs.
• Nearness to Highs: A main idea of the strategy is to focus on strength, not low price. NUTX is trading within 25% of its 52-week high of $193.00, and it is a notable 493% above its 52-week low of $28.12. This points to strong recovery momentum and a place of leadership.
• Better Relative Strength: Maybe most notably, NUTX has a ChartMill Relative Strength (CRS) rating of 99.48. This means it has done better than almost 99% of all stocks in the market over the last year. Minervini regularly notes that the largest winners show better relative strength early in their moves, as it points to institutional buying and market leadership.

This technical view suggests NUTX is in a strong, kept uptrend with good momentum, exactly the setting the Trend Template aims to find for possible investment.

Fundamental Force: The High-Growth Momentum Case

While the chart shows the "what," the fundamentals explain the "why." The high-growth momentum screen looks for companies showing fast improvements in their main business, which often acts as the cause for a kept price rise. NUTX's recent financial numbers show a time of major change:

• Fast Earnings Growth: The company's trailing twelve-month (TTM) Earnings Per Share (EPS) is at $18.49, showing a year-over-year growth of over 873%. Recent quarterly comparisons are even more notable, with EPS for the last reported quarter rising 551% compared to the same quarter last year.
• Quick Revenue Growth: Top-line growth is equally solid. TTM revenue has grown by 236% year-over-year. The last quarter saw sales increase nearly 240% compared to the prior year period, and the company has passed revenue estimates for four straight quarters by an average of nearly 80%.
• Getting Better Profitability: Growth is being turned into profits. The profit margin in the last reported quarter was a good 20.7%, a major improvement from 6.9% two quarters before. This direction of growing margins is a main trait of successful growth companies.
• Analyst Belief: Forward-looking estimates show good feeling. Analyst changes for next year's EPS have been raised by 94% over the last three months, pointing to increasing belief in the company's future earnings potential.

This mix of rising revenues, fast-growing earnings, improving margins, and positive estimate changes creates the fundamental "cause" that Minervini's SEPA (Specific Entry Point Analysis) method calls important for a stock to move into a kept high-performance phase.

Technical Condition Summary

A look at the detailed ChartMill Technical Analysis Report for NUTX gives a combined view of its market state. The report gives the stock a perfect Technical Rating of 10 out of 10, noting both its short-term and long-term trends are positive. It confirms the stock is a top performer, doing better than 99% of the total market and 97% of its peers in the Health Care Providers & Services industry. The report does note that while the technical rating is very good, the current Setup Quality score is medium, as the stock has been trading in a wide range over the last month. This suggests that while the long-term trend is strongly in place, investors might look for a more set period of stability or a move back to a main support level (such as the noted area around $105.22-$105.72) for a possibly lower-risk entry point in line with volatility reduction ideas.

Finding Like Chances

The method that pointed out NUTX, joining the strict technical filters of the Minervini Trend Template with a search for high-growth fundamental momentum, can be used in a step-by-step way to the wider market. For investors interested in looking for other stocks that show this strong mix of trend health and fast growth, the set screen is ready for more study.

→ Look at the High Growth Momentum + Trend Template screen for more possible candidates.

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Disclaimer: This article is for information and learning only. It is not meant as investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and certain methods, but past performance does not guarantee future results. Investing has risk, including the possible loss of principal. Always do your own study and think about talking with a qualified financial advisor before making any investment choices.