NVENT ELECTRIC PLC (NYSE:NVT) Fits the High-Growth Momentum and Trend Template Profile

The Mark Minervini Trend Template is a methodical process used to find stocks showing solid uptrends, concentrating on particular technical measures to confirm a stock is in a verified stage 2 advance. This process is frequently used with fundamental filters to identify companies with strong growth features, forming an effective combination for momentum and growth investors. By using a 'High Growth Momentum + Trend Template' screen, investors can methodically find securities that not only show notable price strength but also have the supporting financial momentum that frequently comes before major price gains.

Technical Strength and the Trend Template

NVENT ELECTRIC PLC (NYSE:NVT) displays a notable technical setup that matches the needs of the Minervini Trend Template. The template's main purpose is to sort for stocks in a clear uptrend, and NVT's present chart arrangement meets its central principles.

The stock's price movement compared to its important moving averages is a fundamental part of the Trend Template, as it verifies the agreement of short-term and long-term momentum. A review of NVT shows a positive arrangement:

• The present price of $104.09 is trading above its increasing 50-day ($101.39), 150-day ($82.63), and 200-day ($76.43) simple moving averages.
• The 50-day moving average is located above both the 150-day and 200-day averages.
• The 150-day moving average is also above the 200-day average, verifying an ordered and increasing trend formation.

Also, the stock's location relative to its 52-week range is a main measure of strength within the Minervini system. Leaders often trade close to their highs, not their lows. NVT's present price is about 150% higher than its 52-week low of $41.71 and within 11% of its 52-week high of $117.52, fitting the requirements of being both much higher than its lows and near to new highs. This shows solid momentum and an absence of overhead supply. Adding to this price strength is a high relative strength (RS) ranking of 88.42, showing that NVT is doing better than most of the market, a characteristic of real market leaders.

Fundamental Momentum for Growth Investors

While the Trend Template finds how a stock is moving, the High Growth Momentum (HGM) rating helps clarify why it could be moving. For a stock to be evaluated for high-growth investing, it needs to show improving business fundamentals. NVT's recent financial information shows several good catalysts that fit with this growth-oriented plan.

An examination of the company's earnings performance shows a marked improvement. The latest quarter's earnings per share (EPS) increased by 44.4% compared to the same quarter last year. This is a major gain over the earlier quarters and points to a possible turning point. This solid performance is backed by a large 34.8% year-over-year sales growth in the last quarter, showing that top-line expansion is driving bottom-line outcomes.

Maybe most positive for future outlook are the analyst changes. Over the last three months, the average analyst estimate for next year's EPS has been increased by 6.7%, with revenue estimates for the next year also being increased by 6.2%. These positive changes are a strong fundamental catalyst, often coming before continued institutional buying and price gains. The company has also shown a capacity to surpass expectations, beating EPS estimates in two of the last four quarters and revenue estimates in three of the last four.

High-Level Technical Analysis Summary

The provided technical report for NVT gives the stock a solid rating of 8 out of 10, reflecting its sound technical condition. The long-term trend is labeled as positive, which is the main condition looked for by the Minervini plan. The report also finds a number of clear support areas below the present price, with the nearest one spanning from $103.78 to $104.08. These distinct support levels are important for risk management, as they allow for the planned placement of stop-loss orders. The general evaluation states that NVT has a very good technical rating and shows a reasonable setup pattern, with prices having moved sideways lately, possibly giving a planned entry point.

For a more detailed view of the technical setup, including exact support and resistance levels, you can examine the full technical analysis report for NVT.

Discovering Similar Opportunities

NVENT ELECTRIC PLC acts as a clear example of a stock that fits a systematic growth and momentum plan. For investors looking to find other companies that meet this strict mix of technical strength and fundamental growth, the screening process that found NVT can be a useful instrument.

You can investigate more possible candidates that fit this "High Growth Momentum + Trend Template" profile by using the pre-configured stock screener.

Disclaimer: This is not investment advice. The content is intended for information and education purposes only. It is crucial to conduct your own research and consider your individual financial situation and risk tolerance before making any investment decisions. Please read our full disclaimer and terms of use to understand our obligations.