Why PALOMAR HOLDINGS INC (NASDAQ:PLMR) could fit Mark Minervini’s high-growth criteria

Our stock screener has spotted PALOMAR HOLDINGS INC (NASDAQ:PLMR) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Minervini Trend Template Analysis.

PLMR checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Assessing Growth for PLMR

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. PLMR was assigned a score of 7 for growth:

Explosive Earnings Growth

• PLMR has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 36.94% increase. This indicates improving financial performance and the company's effective management of its operations.
• Accelerating EPS growth for PLMR: the current Q2Q growth of 36.94% exceeds the previous quarter Q2Q growth of 33.7%.
• The 1-year EPS growth of PLMR (37.94%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The 3-year EPS growth of PLMR (35.41%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• PLMR has experienced 23.28% q2q revenue growth, indicating a significant sales increase.
• PLMR has achieved significant 1-year revenue growth of 47.33%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• PLMR has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Profitability & Financial Strength

• In the past year PLMR has expanded its Profit Margin, which demonstrates increasing profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, PLMR demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• PLMR showcases a robust Return on Equity (ROE) of 15.43%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• With a Debt-to-Equity ratio at 0.0, PLMR showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.

Market Strength & Institutional Confidence

• With 94.85% of the total shares held by institutional investors, PLMR showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• PLMR has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 94.84 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Looking at the Setup

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, PLMR has a 8 as its setup rating:

PLMR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 129.31, a Stop Loss order could be placed below this zone.

Check the latest full technical report of PLMR for a complete technical analysis.

Final Thoughts

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.