PaySign Inc (NASDAQ:PAYS) – A High-Momentum Stock Aligning with Minervini’s Trend Model and Strong Growth Fundamentals

PaySign Inc (NASDAQ:PAYS) – A Strong Momentum Stock Matching Minervini’s Trend Model

Mark Minervini’s trend-based strategy looks for stocks with solid technical and fundamental traits. The method uses technical filters, such as moving averages, relative strength, and price movement, along with growth metrics to find stocks with high potential. PaySign Inc (NASDAQ:PAYS) stands out as a stock that fits this model, showing both a strong technical pattern and improving earnings growth.

Why PAYS Matches the Minervini Trend Model

The Trend Model requires stocks to meet specific technical conditions to confirm an upward trend. PaySign meets these criteria:

• Price Above Key Moving Averages: The stock trades at $8.56, above its 50-day ($5.84), 150-day ($3.68), and 200-day ($3.65) moving averages, indicating continued upward movement.
• Increasing Moving Averages: The 50-day, 150-day, and 200-day MAs are all rising, supporting the positive trend.
• High Relative Strength: With a ChartMill Relative Strength (CRS) score of 98.45, PAYS ranks near the top of its sector.
• Close to 52-Week High: The stock is trading within 4% of its 52-week high ($8.88), a trait common in leading momentum stocks.
• Notable Price Gains: PAYS has risen 275% over the past three months and 198% over six months, showing strong upward movement.

These technical features align with Minervini’s standards for stocks in Stage 2 (uptrend), where top performers often pause before continuing higher.

Strong Growth Fundamentals Strengthening the Argument

Beyond technicals, Minervini highlights earnings and revenue growth as critical for stock performance. PaySign shows solid fundamental progress:

• Earnings Growth:
  • EPS (TTM) Growth (YoY): +83.3%
  • Latest Quarterly EPS Growth (Q2Q): +400%
  • Next Quarter EPS Growth (Estimate): +257%
  • Analysts have increased next-year EPS estimates by 1,080% over the past three months, a positive sign.
• Revenue Growth:
  • Revenue Growth (YoY): +26.8%
  • Latest Quarterly Sales Growth: +41%
  • Next Quarter Revenue Growth (Estimate): +33%
• Improved Profitability:
  • Profit Margin (Latest Quarter): 13.9%, up from 8.8% in the previous quarter.

These numbers suggest PaySign is not just a technical breakout but also a fundamentally sound growth stock—a mix Minervini targets for high-confidence trades.

Technical Overview

ChartMill’s technical report gives PAYS a score of 9/10, noting:

• Strong upward trends in both short and long terms.
• A new 52-week high, confirming positive momentum.
• Support levels at $7.64-$7.94 and $5.22, offering downside protection.

However, the setup quality is rated 4/10, suggesting recent volatility may require waiting for a pause before an ideal entry. View the full technical report here.

Final Thoughts

PaySign Inc makes a strong case for trend followers and growth investors. Its alignment with Minervini’s Trend Model, along with improving earnings and revenue, positions it as a high-momentum stock. While the recent surge calls for caution on new entries, its technical and fundamental strength makes it worth monitoring for pullbacks or pauses.

For more high-growth momentum stocks meeting Minervini’s criteria, check our High Growth Momentum + Trend Model screen here.

Disclaimer: This is not investment advice. Our content is for informational and educational purposes only. Please read our full disclaimer here.