A systematic method for finding high-potential stocks mixes strict technical analysis with fundamental growth measures. The system, made famous by veteran trader Mark Minervini, uses his Trend Template to find securities showing solid uptrends, then adds this with strict fundamental rules to confirm the main company shows speeding up business momentum. This two-part plan aims to catch stocks in the first parts of major price gains, pushed by both technical health and strong earnings.
Technical Health and the Trend Template
SEACOAST BANKING CORP/FL (NASDAQ:SBCF) now shows a strong technical picture that matches the main ideas of the Minervini Trend Template. This template is made to filter for stocks in a clear Stage 2 uptrend, skipping those that are resting or going down.
A look at SBCF's price action shows it fits several important technical rules:
- Price Above Key Moving Averages: The stock trades above its 150-day ($27.93) and 200-day ($27.76) simple moving averages (SMAs), confirming its place in a long-term positive phase.
- Positive Moving Average Alignment: The 50-day SMA ($30.72) is located above both the 150-day and 200-day SMAs, a standard setup pointing to continued upward momentum across several timeframes.
- Proximity to Highs: With a current price of $30.91, SBCF is trading within 5% of its 52-week high of $32.33, a sign of leading stocks that often keep doing well. It also sits more than 40% above its 52-week low, showing major recovery and health.
- Strong Relative Strength: The stock has a ChartMill Relative Strength (CRS) rating of 70.43, meaning it is doing better than most of the market. High relative strength is a key part of the Minervini method, as it finds market leaders.
Fundamental Momentum for Growth Investors
Beyond a good chart, the strategy requires outstanding fundamental performance. SBCF shows several measures that make it suitable for high-growth momentum investors, concentrating on earnings speed-up and sales growth.
The company's recent earnings reports display solid momentum:
- Earnings Per Share (EPS) Growth: The most recent quarter showed a year-over-year EPS jump of 44.4%. This comes after a similarly solid 44.4% growth in the quarter before, pointing to a pattern of speeding up profitability.
- Positive Estimate Revisions: Analyst opinion is getting better, with the average EPS guess for the next fiscal year changed upward by 6.7% over the last three months. Upward changes often come before more price gains as big investors update their models.
- Revenue Acceleration: Top-line growth is also solid, with the last quarter reporting a 20.7% year-over-year rise in revenue. This shows a major speed-up from the 12.0% and 3.7% growth rates seen in the two quarters before.
- Profit Margin Expansion: The company's profit margin in the last quarter was 28.2%, a large gain over the 22.4% margin from the prior quarter. Growing margins suggest good operations and pricing ability, important features of high-quality growth companies.
Consolidation and Setup Quality
While the long-term trend is positive, the short-term view shows a stock that is settling its recent gains. According to the technical analysis report, SBCF has been trading in a range between about $28.58 and $31.99 over the past month. This time of consolidation has lowered volatility and made a clear support area near $30.72, with a set resistance zone just above the current price starting at $31.44.
This makes a high-chance setup where a clear move above the $31.44 resistance level could signal the next price rise. The narrow trading range gives a clear line for a stop-loss order, clearly setting the trade's risk, which is a vital part of careful risk management within the Minervini plan.
Technical Analysis Summary
The technical report for SBCF gives a rating of 5 out of 10, showing a medium-term technical health score. However, it importantly points out a solid setup rating of 8, meaning that even with the medium technical score, the present chart pattern offers a good, low-volatility entry chance. The report says the stock is performing similarly to the wider market and finds key support and resistance levels that traders can use to plan a possible trade. For a detailed look at the technical indicators, you can check the full technical analysis report for SBCF.
Finding Similar Opportunities
SBCF was found using a specific screen that mixes the Minervini Trend Template with a High Growth Momentum filter. This step-by-step process helps find stocks that are both technically healthy and fundamentally speeding up. For investors looking for other choices that fit this strict growth-and-momentum profile, new options can be found daily by using the High Growth Momentum + Trend Template screen.
Disclaimer: This article is for informational and educational purposes only and is not investment advice. The analysis does not constitute a recommendation to buy, sell, or hold any security. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. Please read our full disclaimer and terms of use for more information.
