Investors looking to join strict technical rules with an emphasis on fundamental growth frequently consider methods like the one created by Mark Minervini. His plan methodically finds stocks showing solid upward price movements, outlined by his Trend Template, while also requiring strong and quickening earnings and sales growth. This two-part method tries to find leading stocks early in their price increase phases, where the combination of forceful price movement and getting better business foundations can result in large gains. A recent filter made to locate these chances, mixing the Minervini Trend Template with a High Growth Momentum (HGM) score, has pointed out Postal Realty Trust Inc. , A (NYSE:PSTL) as a candidate worth more detailed review.
Technical Base: Following the Minervini Trend Template
The main part of the Minervini plan is the Trend Template, a group of fixed technical rules that makes sure a stock is in a verified, forceful upward trend before it is reviewed. Postal Realty Trust now shows a clear match with these rules, which is important for reducing risk and trading with the main price movement.
- Price Above Important Moving Averages: The stock's last price of $17.10 trades well above its rising 50-day ($15.66), 150-day ($15.29), and 200-day ($14.81) simple moving averages. This ordered position shows continued buying interest across all main time periods.
- Moving Average Order: The shorter 50-day moving average is placed above both the 150-day and 200-day averages, and the 150-day is also above the 200-day. This step-by-step positive order confirms a solid and orderly stage 2 price increase.
- Nearness to Highs: At $17.10, PSTL is trading within 0.3% of its 52-week high of $17.16 and is about 39% above its 52-week low of $12.26. Minervini notes that real market leaders reach new highs, and staying within 25% of the yearly top is a sign of strength, not a caution.
- Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 83.9, PSTL is doing better than almost 84% of the whole market. High relative strength is a main filter in the plan, as it finds stocks that are wanted even when the wider market moves.
This technical view shows PSTL as a stock in a controlling upward trend, meeting the strict entry requirements that describe the Minervini method for handling downside risk and taking part in continued price increases.
Fundamental Driver: Meeting High Growth Momentum Standards
While the Trend Template makes sure a stock is technically good, the Minervini plan greatly values the fundamental reason. The "High Growth Momentum" part of the filter looks for companies showing very fast and often speeding growth in earnings and sales—the kind of results that draw large investors and supports long price increases. Postal Realty Trust's recent financial numbers show important movement.
- Very Fast Earnings Growth: The company's trailing twelve-month (TTM) EPS has increased by 400% year-over-year. Even more notable is the speeding up seen on a three-month basis, with recent year-over-year EPS growth rates of 700%, 500%, and 333% in following quarters. This series of very large, sequential beats is a clear mark of a fundamental change point.
- Steady Revenue Growth: Top-line growth is solid and steady, with TTM revenue up 26.7%. Three-month sales growth has been consistently good, reported between 23.7% and 29.4% over the past year, showing the business is growing well.
- Analyst Optimism: The market's future view is also good, with analysts increasing their average EPS estimate for the next fiscal year by 23.5% over the last three months. Such upward changes often come before more price gains as views are reset.
- Profit Margin Direction: After some changes, the most recent three-month profit margin of 12.95% shows a good step-by-step gain, meaning the company is starting to turn its fast revenue growth more effectively into profits.
This mix of very fast growth on the bottom line and steady, solid top-line growth gives the fundamental reason for the stock's technical price breakout, matching the Minervini idea that the largest stock market winners are nearly always backed by strong earnings stories.
Technical Condition and Present Position Review
According to ChartMill's own analysis, Postal Realty Trust gets a top-level Technical Rating of 10 out of 10, showing outstanding technical condition. The report states the stock is in positive trends across both short and long-term time periods and is doing better than 90% of its group in the Diversified REITs industry. It is also trading at a new 52-week high, a confirming sign of strength.
However, the analysis also gives an important detail for possible entry timing. The stock gets a low Setup Rating of 1, meaning that after its solid recent rise, the price is stretched and not now in a standard pause or "base" shape. The report summary suggests that "for a good entry it is better to wait for a pause." This difference is key for users of the plan, as it separates finding a solid stock from finding a best, low-risk entry point. A full review of the technical picture, including detailed support levels, is available in the detailed technical report for PSTL.
A Candidate for the Growth-Oriented Watchlist
Postal Realty Trust shows a notable example of a security that fits the two needs of the Minervini-inspired filter. It shows the clean technical picture of a market leader in a clear stage 2 upward trend, meeting every rule of the strict Trend Template. Fundamentally, it is producing the kind of very fast, speeding earnings growth that high-movement investors look for. While the present stretched price action means waiting for a better-formed position, PSTL has the traits that growth and movement plans try to find. Investors wanting to find similar candidates that mix solid trends with high-growth foundations can look into the filter settings more.
Find more stocks that meet the High Growth Momentum and Trend Template rules by using the pre-set filter on ChartMill.
Disclaimer: This article is for information and learning only. It is not meant as investment advice, nor does it make a suggestion to buy, sell, or keep any security. The analysis is based on given data and filter methods described, and all investment choices should be made from your own study, risk comfort, and with talk with a qualified financial advisor. Please read our full disclaimer here.
