D-WAVE QUANTUM INC (NYSE:QBTS) has been identified as a high-growth momentum stock that also meets Mark Minervini’s Trend Template criteria. The company, a developer of quantum computing systems and services, exhibits strong technical and fundamental traits that align with both growth investing and trend-following strategies.
Why QBTS Fits the Minervini Trend Template
Minervini’s Trend Template focuses on stocks with strong upward momentum, confirmed by moving averages and relative strength. QBTS meets these criteria:
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Price Above Key Moving Averages:
- Current price ($17.11) is well above the 50-day SMA ($9.68), 150-day SMA ($6.69), and 200-day SMA ($5.27).
- The 50-day SMA is above both the 150-day and 200-day SMAs, confirming bullish momentum.
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Upward-Trending Moving Averages:
- The 200-day SMA is rising, indicating a long-term uptrend.
- The 150-day SMA is also trending upward, reinforcing strength.
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Strong Relative Strength:
- QBTS has a ChartMill Relative Strength (CRS) score of 99.83, meaning it outperforms nearly all other stocks.
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Price Near 52-Week High:
- The stock is trading within 13.4% of its 52-week high ($19.77), a sign of sustained momentum.
- It is also 2,180% above its 52-week low ($0.75), showing significant recovery and growth.
High-Growth Fundamentals
Beyond technical strength, QBTS demonstrates accelerating growth metrics:
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Revenue Growth:
- Quarterly revenue surged 508.6% year-over-year.
- Annual revenue growth (TTM) stands at 121.6%, indicating rapid expansion.
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Earnings Momentum:
- EPS growth (Q2Q) improved by 80.8%, with consistent beats in earnings estimates (3 out of last 4 quarters).
- Analysts have raised next-year EPS estimates by 17.5% over the past three months.
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Sector Leadership:
- QBTS operates in the high-potential quantum computing sector, with increasing enterprise adoption.
- The stock outperforms 99% of its software industry peers.
Technical Report Summary
The ChartMill Technical Report rates QBTS a perfect 10/10 for technical strength, citing:
- Strong long-term and short-term uptrends.
- High relative strength (99.83) and liquidity.
- Trading near the upper end of its recent range ($6.82 - $19.77).
While the setup rating is currently 3/10 due to recent volatility, the stock remains a compelling candidate for growth investors once it consolidates.
Our High Growth Momentum + Trend Template Screener lists more high-growth stocks with strong technical setups.
Disclaimer
This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.
