In growth investing, joining a solid technical system with firm fundamental momentum can be an effective method for spotting possible leaders. One technique that shows this is the strategy made famous by trader Mark Minervini, which depends on his Trend Template. This template is a fixed group of technical rules meant to spot stocks in clear, strong uptrends, making sure an investor is moving with the current momentum. To add to this, a concentration on high-growth basics, like speeding earnings, increasing revenues, and good estimate changes, helps find companies with the core business health to possibly continue their rises. A filter that joins the Minervini Trend Template with a High Growth Momentum (HGM) rating aims to find securities that perform well on both sides: showing clean chart health while also having the financial speed that draws institutional money.
PLANET LABS PBC (NYSE:PL) offers a strong example of a stock that now meets this two-part filter. The company, which runs a big group of Earth-imaging satellites to give daily global data and study, seems to be finding success from both a market and business view.
Fitting the Minervini Trend Template
The Minervini Trend Template is essential because it removes stocks in poor or resting stages, requiring a look at those already in a clear Stage 2 uptrend. This is not about finding lows, but about trading along the line of set strength. A check of PL's technical measures shows it meets each important point:
- Price vs. Moving Averages: The present price of $20.32 trades much higher than its rising 50-day ($13.76), 150-day ($9.75), and 200-day ($8.20) simple moving averages (SMAs). This order is a clear sign of stacked support and positive momentum across all main timeframes.
- Moving Average Order: The 50-day SMA is higher than both the 150-day and 200-day SMAs, and the 150-day SMA is higher than the 200-day SMA. This step-by-step positive order confirms the trend's soundness and growing momentum.
- Nearness to Highs: At $20.32, PL's price is within 3.2% of its 52-week high of $20.99 and a large 628% above its 52-week low of $2.79. Minervini's strategy stresses that real market leaders are often seen near new highs, not with deep fallers.
- Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 99.24, PL is doing better than over 99% of the whole market group. High relative strength is a required feature for leadership, showing steady demand and institutional buying.
This technical view shows a stock in a strong, kept uptrend, meeting the main "trend" part of Minervini's Specific Entry Point Analysis (SEPA) method.
Meeting the Standard as a High-Growth Pick
While the chart shows the "what," the fundamental growth numbers explain the "why." The High Growth Momentum filter looks for companies showing speeding business results, which often works as the reason for kept price gains. PL's recent financial data shows several good paths:
- Earnings Momentum: The company is showing big gains in its bottom line. Quarterly EPS growth (Q2Q) for the newest period was 100%. Also, analysts are becoming more positive, with the average EPS guess for the next fiscal year changed upward by 4.82% over the last three months.
- Strong Sales Growth: Revenue growth is speeding, with the last quarter showing a 32.6% year-over-year rise. This is a clear gain from the 9.6% and 4.6% growth rates seen in the two earlier quarters, showing a good sales speed trend.
- Cash Flow Creation: Maybe one of the most clear fundamental gains is in free cash flow. Over the past twelve months, PL made $0.11 per share in free cash flow, showing growth of over 137% compared to the year before. A move toward positive cash creation is a key step for growth companies.
- Estimate Beats Making Trust: The company has beaten consensus EPS guesses in three of the last four quarters, with an average beat of 3.1%. This steady skill to top hopes helps build trust and can push more institutional interest.
These numbers highlight the "fundamentals" and "catalyst" parts of the SEPA strategy, suggesting the technical rise is backed by real business advance.
Technical Condition and Present Position
According to ChartMill's own study, PLANET LABS PBC gets a top-level Technical Rating of 10/10. This score shows its high performance across short and long-term trends, its leader place within the Professional Services industry, and its firm momentum. The report states the stock is in a clear positive trend and trading near its 52-week high.
However, the study also gives a key note on timing. The Setup Quality Rating is now a 3/10. This shows that while the stock's technical condition is very good, its recent price action has been unstable and stretched. It is not now showing a standard, low-risk pause or "Volatility Contraction Pattern" (VCP) that the Minervini strategy often looks for for a best entry. The summary suggests that it "may be a good idea to wait for a pause or drop before thinking about an entry."
For a full look at the support levels, trend study, and full technical notes, you can see the complete ChartMill Technical Report for PL.
Locating Like Chances
PLANET LABS PBC shows the kind of pick that comes from a planned search for high-growth stocks in clear uptrends. For investors wanting to use this method to find other possible ideas, the filter that found PL can be a beginning point.
Disclaimer: This article is for information and learning only. It is not a suggestion to buy, sell, or keep any security. The study is based on present data and a specific investment method. All investing has risk, including the possible loss of principal. You should do your own full research and think about your personal money situation and risk comfort before making any investment choices. Past results are not a guide for future results.
