STONEX GROUP INC (NASDAQ:SNEX) Emerges as a High-Growth Momentum Pick Aligning with Minervini’s Trend Template

STONEX GROUP INC (NASDAQ:SNEX) has been recognized as a potential option for trend-following and high-growth investors, matching Mark Minervini’s momentum-focused strategy and strict fundamental growth standards. The selection method blends Minervini’s Trend Template, a technical tool for spotting stocks in strong uptrends, with a High Growth Momentum (HGM) rating to confirm solid earnings and revenue growth. This combined method selects stocks displaying both price strength and business momentum, essential parts of Minervini’s SEPA (Specific Entry Point Analysis) approach.

Why SNEX Matches the Minervini Trend Template

Minervini’s Trend Template highlights stocks in Stage 2 uptrends, marked by rising moving averages, strong relative performance, and closeness to 52-week highs. SNEX fits these conditions clearly:

1. Price Above Key Moving Averages:

   • The stock trades at $94.52, above its 50-day ($89.01), 150-day ($80.71), and 200-day SMA ($76.37).
   • All moving averages are rising, with the 50-day above the 150-day and 200-day, a positive alignment.

2. Relative Strength:

   • SNEX’s ChartMill Relative Strength (CRS) of 89.41 shows it beats nearly 90% of all stocks, a sign of market leadership.

3. Price Momentum:

   • SNEX is within 5% of its 52-week high ($99.08) and has climbed 70.7% over the past year, showing steady upward movement.

4. Support and Resistance:

   • The stock has multiple support levels (e.g., $92.79–$93.70) and little overhead resistance, lowering downside risk.

These technical features reflect Minervini’s focus on stocks with "big earnings attracting big attention," where institutional buying fuels lasting rallies.

High Growth Fundamentals

The HGM rating (≥4) confirms SNEX shows faster earnings and revenue growth, important for high-growth investors:

• Earnings Growth:

  • EPS grew 18.1% YoY (TTM), with recent quarterly growth speeding up to 29.8% (Q2Q).
  • EPS surprises: SNEX exceeded estimates in all four trailing quarters by an average of 8.5%.

• Revenue Expansion:

  • Revenue jumped 67.7% YoY (TTM), with quarterly growth reaching 49.5% in the latest quarter.
  • Analysts raised next-year revenue estimates by 0.86% over the past three months, showing confidence.

• Profitability:

  • Despite margin changes (Q3 profit margin: 18.9%), the company keeps solid annual margins (25.2% in FY).

These numbers align with Minervini’s focus on "fundamentals that drive strong performance," where earnings surprises and upward revisions fuel further price gains.

Technical Breakout Potential

ChartMill’s technical report gives SNEX a near-perfect score of 10/10, noting:

• A "steady performance in both short and long-term periods."
• Lower volatility during consolidation, with a setup rating of 8/10 hinting at a possible breakout above $94.54 (resistance).
• Strong support at $93.70, providing a clear stop-loss level.

Read the full technical analysis here.

Conclusion

SNEX shows the combination of Minervini’s trend-following ideas and high-growth fundamentals. Its technical strength, along with faster earnings and revenue growth, makes it a strong option for momentum investors. For those looking for similar opportunities, check the High Growth Momentum + Trend Template screen for more screened stocks.

Disclaimer: This analysis is for informational purposes only and not investment advice. Conduct your own research or consult a financial advisor before making decisions. Read our full disclaimer here.