OptimizeRx Corp (NASDAQ:OPRX) Combines Technical Strength with High-Growth Momentum

In the world of growth investing, combining technical strength with fundamental momentum can be a good method for finding high-potential stocks. The method used here brings together Mark Minervini’s Trend Template, a strict group of technical rules meant to find stocks in strong uptrends, with a look at high growth momentum (HGM). This two-part check makes sure that chosen stocks not only show solid price movement and relative strength but also display speeding up earnings, sales, and profitability, important factors for continued strong performance.

OptimizeRx Corp (NASDAQ:OPRX) appears as a noteworthy candidate through this view, matching both the technical rules of the Trend Template and the strong growth numbers wanted by momentum investors.

Technical Strength and Trend Compliance

A key part of Minervini’s method is finding stocks in clear Stage 2 uptrends, marked by rising moving averages and good relative performance. OPRX meets these requirements well:

• Price Above Key Moving Averages: The current price of $18.82 trades well above the 50-day ($14.81), 150-day ($10.96), and 200-day ($9.50) simple moving averages, confirming agreement across short, medium, and long-term trends.
• Upward Sloping Averages: Importantly, all these moving averages are moving upward, with the 200-day MA rising steadily, a sign of continued institutional buying and long-term positive momentum.
• Proximity to Highs: OPRX is trading within 4% of its 52-week high of $19.25, showing strong momentum and a lack of overhead resistance, while sitting 398% above its 52-week low, proof of its strong recovery and growth path.
• Superior Relative Strength: With a ChartMill Relative Strength rating of 95.78, OPRX does better than nearly 96% of all stocks, highlighting its market leadership, a main point in Minervini’s plan to benefit from equities that lead instead of follow the market.

These technical features are important because they help remove unstable or weakening stocks, letting investors focus on issues with confirmed momentum and less downside risk during uptrends.

Fundamentals and Growth Momentum

Beyond technicals, Minervini stresses the importance of fundamental speeding up, especially in earnings, revenue, and margins, to find companies with chance for “superperformance.” OPRX shows fast growth across several important numbers:

• Earnings Growth:
  • EPS growth on a TTM basis jumped 184.6%, while the most recent quarter showed a huge 1100% year-over-year increase.
  • The company has beaten EPS estimates in all of the last four quarters, with an average surprise of 384.3%, showing steady outperformance and positive analyst feeling.
• Revenue Expansion:
  • Revenue growth stays solid, with a 25.9% increase over the TTM period and a 55.2% jump in the last quarter.
  • Quarterly sales growth has sped up notably, supporting the company’s scaling abilities and market demand for its digital health solutions.
• Profitability and Revisions:
  • Profit margins have gotten better, and forward-looking estimates have been moved upward strongly, with next-year EPS projections moved up by 52.3% over the last three months, a good sign that analysts are becoming more positive about future profitability.
• Free Cash Flow Growth:
  • Free cash flow per share grew 341.8% over the past year, giving the company financial freedom to invest in growth or strategic chances.

These fundamental strengths are key because, as Minervini says, “big earnings attract big attention.” Speeding up growth draws institutional interest, which can drive more price increase and lower volatility during consolidations.

Technical and Setup Summary

According to the detailed technical report, OPRX gets a near-perfect technical rating of 9/10, reflecting its strong trend health, outperformance versus peers, and momentum near new highs. The report notes, however, that while the stock is technically sound, its recent volatility may need patience for a best entry point. Support levels are well-marked, ranging from $17.16,$17.19 (near key moving averages) down to $12.65, giving clear areas for risk management.

Explore More High-Growth Momentum Ideas

For investors interested in finding more stocks that fit this ruled growth and momentum plan, more research can be done using the High Growth Momentum + Trend Template screen. This tool helps find companies with good technicals and fundamental growth features, providing a useful starting point for more due diligence.

Conclusion

OptimizeRx shows a notable example of a stock that fits with both Minervini’s trend-following ideas and the requirements for high-growth investing. Its strong price trend, together with exceptional earnings and revenue momentum, suggests a company in a strong time of expansion. While entry timing needs careful attention to volatility and support levels, the basic technical and fundamental profile offers a noteworthy case for growth-focused investors.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.