In the search for stocks that may rise substantially, many investors use organized methods that join strict technical and fundamental study. One such system is supported by noted trader Mark Minervini, whose SEPA (Specific Entry Point Analysis) method centers on locating stocks in strong uptrends, supported by quickening business foundations. This system is captured in a useful tool called the Trend Template, which gives a list of technical rules to confirm a stock is in a verified, long-term uptrend. To better narrow the hunt for outstanding chances, this method can be combined with an emphasis on strong-growth momentum, looking for firms that are not only trending favorably on the charts but also displaying solid and gaining financial results. This joined view seeks to identify securities that are front-runners in their field, set for possible extension of their upward path.
Technical Base: Following the Minervini Trend Template
For a stock to be viewed under the Minervini structure, it must first meet a fixed group of technical requirements made to screen for strength and remove weakness. The Trend Template makes sure an investor is only examining stocks in a clear Stage 2 advance, where the chance of continued upward movement is statistically greater. PodcastOne Inc (NASDAQ:PODC) now shows a chart formation that matches many of these central ideas.
- Price Above Key Moving Averages: The stock's price is trading above its rising 50-day, 150-day, and 200-day simple moving averages (SMAs). This ordered alignment, with the shorter-term averages above the longer-term ones, is a standard mark of a sound uptrend, showing continued buying interest across several timeframes.
- Nearness to Highs: A central Minervini idea is to concentrate on strength, not low price. PODC's present price is much above its 52-week low, showing a major recovery and trend shift. While it is not within 25% of its 52-week high currently, its place well above the main moving averages and its recent trading activity indicate it is settling within its uptrend.
- Solid Relative Strength: The stock has a ChartMill Relative Strength (CRS) rating of 78.46, meaning it is doing better than almost 79% of the whole market. Minervini notes that real market front-runners will show high relative strength, often above 70, as capital moves into the top performers first.
This technical setup is vital because it clearly takes out stocks that are in resting or falling stages, making the investor look only at issues where the trend is already favorable. The template does not forecast the future, but it greatly raises the chances by making sure every possibility is already in a bullish formation.
Fundamental Driver: The Strong-Growth Momentum Picture
While a solid chart is necessary, Minervini's method gives similar weight to the fundamental "driver" moving the price activity. The best chart shapes frequently come from firms seeing quickening growth, which draws institutional investment. PODC's financial measures show a picture that matches a strong-growth momentum investor's list.
- Strong Revenue Growth: The firm is showing good top-line increase, with trailing twelve-month (TTM) revenue growth of 20.0%. More notably, recent quarterly sales growth numbers are solid, including a 24.7% year-over-year rise in the last reported quarter. This steady revenue quickening is a main screen for growth investors.
- Moving Toward Profitability: A key change is clear in the firm's earnings path. After times of losses, the EPS growth on a TTM basis has turned clearly positive, up 31%. The most recent quarterly EPS jumped 42.9% year-over-year, showing a strong turning point in profitability. Analyst view matches this gain, with EPS projections for the next year adjusted higher by almost 18% over the past three months.
- Business Momentum: The firm has a record of beating projections, having topped analyst EPS estimates in three of the past four quarters. This habit of positive surprises can be a reason for more institutional interest and multiple growth.
For a strong-growth momentum plan, these are not just figures; they are proof of a business that is gaining size, bettering its model, and surpassing the market's projections. This fundamental momentum is what gives the "energy" for a maintained technical uptrend, making the stock more than just a chart shape, it shows a firm in a stage of business quickening.
Combination: When Trend Joins Growth
The possible match for the joined Minervini and strong-growth method lies in this combination. PODC's chart indicates it is in a technical uptrend (fitting the Trend Template rules), suggesting informed money may already be gathering shares in expectation of or in answer to its gaining fundamentals. At the same time, the fundamental picture confirms there is a real business gain supporting the price activity. The stock is not only being traded on; it is being revalued based on its growth path.
This joining tries to catch stocks in the early to middle parts of a "positive cycle": gaining fundamentals lead to higher investor need, which pushes the price up and improves the technical view, which then draws more trend-following capital. The method tries to enter during this stage of agreement before the growth story becomes broadly known and fully valued.
Technical Condition Summary
A look at the detailed ChartMill Technical Analysis for PODC gives a detailed view. The report gives PODC a technical rating of 7 out of 10, labeling it as a medium performer in the total market but noting that the technical view is positive in both medium and short-term timeframes. The long-term trend is rated as good, which matches the Trend Template note. The study finds several close support areas, the nearest being around $2.63, and a main resistance zone between $2.84 and $2.90. The report notes that while the stock has been settling with lower volatility, a positive sign, it has seen heavy selling pressure in recent days on higher volume, suggesting care on new long positions until the price steadies. This shows the need for timing and exact entry, central ideas of Minervini's SEPA method, which would look for a low-risk entry point on a positive pattern like a volatility squeeze.
Interested in finding more stocks that fit this mix of solid technical trends and strong-growth fundamentals? You can examine the live screen that found PODC and find other possible choices by going to the High Growth Momentum + Trend Template screen on ChartMill.
Disclaimer: This article is for information and learning only. It is not advice to buy, sell, or keep any security, including PODC. The study is based on present data and a particular investment method, but all investing carries risk, including the possible loss of capital. Always do your own complete research, think about your personal financial position and risk comfort, and talk with a qualified financial advisor before making any investment choices. Past results are not a guide for future results.
