NOVA LTD (NASDAQ:NVMI) Screened as High-Growth Momentum Stock with Strong Technicals

Nova Ltd (NASDAQ:NVMI) has been identified by a screening process that merges Mark Minervini’s Trend Template with criteria for high-growth momentum, indicating it could interest investors looking for stocks with solid technicals and good fundamental growth. This two-part method finds firms not just in clear uptrends but also those displaying quickening financial results, a pairing often linked with top-tier market returns.

The screening method relies on Minervini’s organized system, which stresses exact technical requirements to find stocks in Stage 2 advances, phases known for continued upward momentum. At the same time, the screen uses a High Growth Momentum (HGM) score, which measures recent and expected growth in earnings, sales, and profit. Stocks with high marks in both areas are seen as top prospects, as they match Minervini’s view that the strongest stocks display force in both price movement and business foundations.

Technical Match with Minervini’s Trend Template

Nova Ltd meets the main technical standards needed by Minervini’s Trend Template, which centers on agreement across various time periods and momentum measures:

• The present price of $269.00 is higher than all main moving averages: the 50-day SMA ($267.49), 150-day SMA ($231.11), and 200-day SMA ($224.88).
• All these moving averages are trending up, verifying continued positive momentum.
• The 50-day SMA is above both the 150-day and 200-day averages, showing near-term force is guiding longer-term patterns.
• Starting from a 52-week low of $153.995, the current price shows a rise of over 74%, much higher than the 30% limit Minervini needs.
• Trading within 8% of its 52-week high of $291.99, NVMI shows the nearness to new highs that frequently comes before more breakouts.
• A relative strength score of 83.44 shows it is doing better than most stocks, a main feature of market leaders.

These points together indicate that NVMI is in a clear uptrend with good momentum, a basic part of Minervini’s plan for finding stocks with more upside chance.

Fundamental Force and Growth Momentum

Along with technical soundness, Nova shows good fundamental growth, achieving the screen’s HGM score of at least 4. Several measures are notable:

• Earnings growth has been very good, with EPS (TTM) at $8.06, showing year-over-year growth of 44.19%. Recent quarterly EPS growth rates have regularly been over 36%, with one quarter reaching 56.83%.
• Sales growth is also strong, up 43.69% over the trailing twelve months, with recent quarterly sales growth between 38.96% and 50.46%.
• Profit margins have grown, hitting 31.04% in the latest quarter, up from 24.57% two years ago, a signal of better efficiency and pricing ability.
• The firm has surpassed EPS estimates in all of the last four quarters, with an average surprise of 3.51%, showing continued better performance compared to forecasts.
• Free cash flow per share increased 88.37% over the past year, highlighting sound financial condition and operational performance.

These numbers show the kind of fundamental speed Minervini links with “superperformance”, stocks that draw institutional attention because of quickly getting better financials.

Technical and Setup Evaluation

Based on ChartMill’s own analysis, NVMI has a technical score of 7, showing firm trend health, though recent price movement has displayed some sideways action. The setup score of 6 points to an acceptable base formation, with the stock trading in a one-month span between $232.72 and $279.71. Important support is close to $258.54, giving a sensible point for stop-loss orders, while resistance is seen near $273.84. A break above this resistance might signal the next upward move.

For a complete technical examination, readers can see the full technical report for NVMI.

Conclusion

Nova Ltd is a strong example of a stock that fits both the technical rules of Minervini’s trend-following system and the fundamental strictness of high-growth investment. Its forceful price trend, along with outstanding earnings and sales momentum, places it as a candidate deserving more study for investors wanting exposure to leading semiconductor equipment companies.

For those wanting to find other high-growth, technically good chances, more outcomes from this screen are available via this link.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All investment decisions involve risk, and readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.