A systematic method for finding high-potential growth stocks mixes strict technical screening with fundamental momentum review. The system uses Mark Minervini's Trend Template, which sorts for stocks showing strong uptrends, and adds a High Growth Momentum (HGM) rating to confirm solid underlying business results. This two-part plan looks for companies that are not only in strong technical breakouts but also showing the sales and earnings speed that usually supports continued price gains.
Meeting the Minervini Trend Template
OptimizeRx Corp (NASDAQ:OPRX) shows a strong technical profile by meeting the main points of the Minervini Trend Template. This template is made to find stocks in a confirmed Stage 2 uptrend, making sure an investor is buying into strength instead of trying to catch a falling knife.
- Price Above Key Moving Averages: The stock's current price trades well above its 50-day ($18.92), 150-day ($14.61), and 200-day ($12.58) simple moving averages. This arrangement confirms both short-term and long-term positive momentum.
- Rising Moving Averages: All major moving averages are moving up, with the 200-day SMA showing a clear increase from its earlier value. This points to continued institutional accumulation and a good long-term trend.
- Moving Average Alignment: The 50-day SMA is above both the 150-day and 200-day SMAs, a standard positive setup that signals gaining momentum.
- Proximity to Highs: The stock is trading within 15% of its 52-week high of $22.25, a main Minervini requirement that focuses on market leaders, not laggards. Also, its price is over 400% above its 52-week low, highlighting the strong trend already established.
- Superior Relative Strength: With a ChartMill Relative Strength rating of 97.09, OPRX is doing better than almost all other stocks in the market. High relative strength is a fundamental part of the Minervini plan, as it finds securities that are in demand and leading the market higher.
Fundamentals for High Growth Momentum
Beyond the technical view, OPRX displays the explosive fundamental growth that High Growth Momentum investors look for. The company's financial numbers show notable speed, a main force behind continued stock price performance.
- Earnings Growth Acceleration: The company has delivered very high year-over-year EPS growth, with the most recent quarter increasing 66.7%. This comes after an even more notable 1100% growth in the previous quarter, showing strong and speeding up profitability.
- Consistent Earnings Surprises: OPRX has beaten analyst EPS estimates in all of the last four quarters, with an average beat of over 384%. This steady outperformance often leads to positive earnings revisions and upward price momentum as the market updates its expectations.
- Strong Revenue Expansion: Revenue growth remains solid, with the last quarter up 22.3% year-over-year and the trailing twelve-month revenue growth at 28.8%. The company has also beaten revenue estimates in three of the last four quarters.
- Positive Analyst Revisions: Analysts have been raising their forecasts, with the average EPS estimate for next year going up by over 20% in the last three months. Such upward revisions are a solid forward-looking sign and a main part of momentum investing, as they show increasing confidence in the company's future prospects.
Technical Health and Setup
The technical analysis report for OPRX gives a perfect rating of 10, showing outstanding technical health. The long-term trend is positive, and the stock is a top performer within its Health Care Technology industry. While the short-term trend is currently neutral as the stock consolidates its large gains, this has made a potential setup chance.
The report notes lower volatility and price consolidation in the recent period, with a clear support area found around $18.93. This constructive pause within a strong uptrend often comes before the next move higher. For a detailed breakdown of the support levels and a specific trade setup, you can review the full technical analysis report for OPRX.
Finding Similar Opportunities
OptimizeRx shows the kind of opportunity that can be systematically found by mixing trend and momentum filters. For investors looking to find other stocks that meet similar strict technical and fundamental growth requirements, the High Growth Momentum + Trend Template screen offers a selected list of possible candidates.
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 financial situation and risk tolerance before making any investment decisions. Please read our full disclaimer and terms of use to understand our obligations.
