NEW YORK MORTGAGE TRUST INC (NASDAQ:NYMT) Fits the Minervini Trend Template for High-Growth Stocks

Spotting High-Growth Stocks Using the Minervini Trend Template

Mark Minervini’s Trend Template is a methodical way to find stocks in strong upward trends, blending technical and fundamental factors to highlight promising opportunities. The approach focuses on stocks showing solid price movement, strong performance compared to peers, and faster earnings growth—traits often seen in top-performing stocks.

One stock currently fitting these standards is NEW YORK MORTGAGE TRUST INC (NASDAQ:NYMT). The firm, a real estate investment trust (REIT) specializing in residential mortgage assets, has demonstrated both technical stability and better financial results, making it worth examining under Minervini’s method.

How NYMT Matches the Minervini Trend Template

The Trend Template demands stocks meet eight technical conditions, confirming they are in a clear upward trend. NYMT meets these requirements:

1. Price Above Important Moving Averages

   • The stock is above its 50-day ($6.74), 150-day ($6.38), and 200-day ($6.25) moving averages, showing short- and long-term positive trends.
   • The 50-day MA is higher than the 150-day and 200-day MAs, a positive sign suggesting stronger movement.

2. Rising Moving Averages

   • The 150-day and 200-day MAs are moving upward, supporting the stock’s long-term stability.

3. Strong Price Movement

   • NYMT is trading 40% above its 52-week low ($5.01) and within 4% of its 52-week high ($7.27), showing steady upward movement.

4. High Relative Performance

   • With a relative strength (RS) score of 70.84, NYMT performs better than 70% of the market, a trait common in leading stocks.

These technical details align with Minervini’s belief that the best stocks come from solid foundations and maintain steady upward trends.

Strong Growth Fundamentals

Beyond technical factors, Minervini’s method highlights earnings and revenue growth—important for spotting stocks attracting institutional interest. NYMT shows several growth signals:

• Earnings Growth

  • Quarterly EPS growth (Q2Q) jumped 155.9% in the latest quarter, a sharp rise from earlier periods.
  • Next-quarter EPS estimates have been raised +180%, showing improved analyst confidence.

• Revenue Growth

  • Quarterly revenue increased 85.3% year-over-year, with future estimates suggesting +105% growth next quarter.
  • Annual revenue growth (TTM) is at 24.6%, indicating ongoing business growth.

• Better Profitability

  • The latest quarter’s profit margin improved to 16.3%, up from negative results in earlier periods.

These numbers suggest NYMT is seeing a financial turnaround, a key reason behind its recent price strength.

Technical View & Trading Setup

ChartMill’s technical report gives NYMT a score of 8/10, noting its strong trend and better performance in the mortgage REIT sector. Key points include:

• Support & Resistance

  • Immediate support is at $6.63–$6.81, backed by moving averages and trendlines.
  • Resistance is near $7.01–$7.20; a move above this area could signal more gains.

• Setup Quality

  • The setup score of 6/10 suggests the stock is stabilizing after a recent rise. Traders might wait for a tighter range or breakout confirmation before entering.

For a full technical review, see the complete ChartMill technical report.

Final Thoughts

NYMT is a prime example of the kind of stock Minervini’s strategy targets: technically sound, financially improving, and outperforming peers. While the current setup is reasonable, further stabilization could offer a better entry point.

For more high-growth momentum stocks filtered by the Minervini Trend Template, check the High Growth Momentum + Trend Template screen.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management before trading.