Snowflake Inc (NYSE:SNOW) Fits Mark Minervini’s Trend Template with Strong Momentum and Growth Fundamentals

Snowflake Inc (NYSE:SNOW) has been recognized as a possible choice for investors focused on momentum and high-growth opportunities, matching Mark Minervini’s trend-based strategy. The stock aligns with Minervini’s Trend Template, which highlights solid technical performance, while also displaying fundamentals that attract growth-oriented investors. Here, we explain why SNOW fits this combined approach.

Minervini’s Trend Template: Technical Basics

Mark Minervini’s method centers on spotting stocks in clear upward trends using a structured process. The Trend Template checks moving averages, relative strength, and price movement to verify a stock’s positive momentum. SNOW satisfies these conditions:

• Price Above Important Moving Averages: SNOW is above its 50-day ($210.92), 150-day ($180.06), and 200-day ($170.31) moving averages, confirming upward trends in both short and long terms.
• Rising Moving Averages: The 50-day, 150-day, and 200-day MAs are all moving up, supporting the stock’s positive performance.
• High Relative Strength: With a relative strength (RS) score of 93.01, SNOW beats 93% of the market, a key feature of top-performing stocks.
• Price Close to 52-Week High: SNOW is within 3.5% of its 52-week high ($226.60), showing continued momentum.

These points indicate SNOW is in a clear Stage 2 uptrend, a vital part of Minervini’s strategy.

High Growth Momentum: Fundamental Performance

Beyond technicals, SNOW shows strong growth traits, making it appealing to growth-focused investors:

• Revenue Growth: Quarterly revenue growth is 25.7% YoY, with annual revenue growth at 27.5%. The company has exceeded revenue forecasts in the last four quarters.
• Earnings Improvement: While EPS growth has fluctuated, the latest quarter saw a 71.4% YoY rise, hinting at possible renewed growth.
• Free Cash Flow Increase: FCF per share grew 21.3% YoY, showing better profitability.
• Analyst Adjustments: Though next-year EPS estimates have dipped slightly (-3.4%), revenue projections remain positive (+1.3%), suggesting optimism about revenue growth.

These fundamentals match Minervini’s focus on earnings and sales momentum as drivers of stock success.

Technical Analysis Overview

ChartMill’s technical report gives SNOW a 9 out of 10 for technical strength, backed by:

• A positive short- and long-term trend.
• Strong relative strength compared to peers (83rd percentile in IT Services).
• A consolidation phase near resistance at $222.62,$225.80, pointing to a possible breakout chance.
• A recent Pocket Pivot signal, signaling institutional buying.

For more details on SNOW’s technical setup, see the full technical analysis report here.

Final Thoughts

SNOW offers a strong case for both trend-based and growth investors. Its fit with Minervini’s Trend Template confirms solid technicals, while its revenue growth and earnings potential appeal to high-growth strategies.

Searching for more high-growth momentum stocks? Find other options using the High Growth Momentum + Trend Template screen.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management before trading.