How does RYAN SPECIALTY HOLDINGS INC (NYSE:RYAN) stack up against Mark Minervini’s strategy?

In this article we will dive into RYAN SPECIALTY HOLDINGS INC (NYSE:RYAN) as a possible candidate for growth investing. Investors should always do their own research, but we noticed RYAN SPECIALTY HOLDINGS INC showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Does RYAN pass the Minervini Trend Template check?

RYAN 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)

Understanding RYAN's High Growth Momentum Score

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. RYAN scores a 5 out of 10:

Earnings Momentum

• The EPS of RYAN has exhibited growth from one quarter to another (Q2Q), with a 28.57% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Accelerating EPS growth for RYAN: the current Q2Q growth of 28.57% exceeds the previous quarter Q2Q growth of 28.13%.
• RYAN has achieved 29.71% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 24.52%, RYAN showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• Accelerating Sales growth for RYAN: the current Q2Q growth of 24.52% exceeds the previous quarter Q2Q growth of 20.48%.
• RYAN has demonstrated strong 1-year revenue growth of 47.67%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.

Financial Strength & Profitability

• With positive growth in its operating margin over the past year, RYAN showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• The profit margin of RYAN has seen steady growth over the past year, signaling improved profitability.
• RYAN has achieved an impressive Return on Equity (ROE) of 17.62%, showcasing its ability to generate favorable returns for shareholders.

Institutional Confidence & Market Strength

• The ownership composition of RYAN reflects a balanced investor ecosystem, with institutional shareholders owning 81.59%. This indicates a broader market participation and potential for increased trading liquidity.
• RYAN has achieved an impressive Relative Strength (RS) rating of 89.25, showcasing its ability to outperform the broader market.

Looking at the Setup

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. RYAN currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

RYAN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 68.57, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Our latest full technical report of RYAN contains the most current technical analsysis.

Final Thoughts

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.