SOFI TECHNOLOGIES INC (NASDAQ:SOFI) Fits Mark Minervini's High-Growth Momentum Strategy

SOFI TECHNOLOGIES INC (NASDAQ:SOFI) has been identified by a screening process made to find stocks that fit Mark Minervini's disciplined growth and momentum strategy. This method uses his strict Trend Template for technical strength with a High Growth Momentum (HGM) filter to find companies showing both strong price trends and improving fundamental performance. The process looks for leaders in the early part of a major price increase, where technical condition and fundamental growth come together to form high-probability situations.

Following the Minervini Trend Template

The central part of Minervini's strategy is the Trend Template, a group of firm technical rules that confirms a stock is in a definite, strong uptrend. SOFI shows a strong match with these rules, which is important for avoiding poor performers and concentrating capital on market leaders.

• Price Above Key Moving Averages: The stock is trading above its 50-day ($28.16), 150-day ($22.02), and 200-day ($19.66) simple moving averages. This layered order confirms buyers are in charge across short, medium, and long-term periods.
• Rising Long-Term Averages: The 150-day and 200-day moving averages are both in clear upward trends, indicating continued long-term momentum. This meets Minervini's rule that these averages are not just being approached but are clearly increasing.
• Momentum Order: The 50-day moving average is positioned above both the 150-day and 200-day averages, a standard positive arrangement that shows improving momentum.
• Nearness to Highs: A main part of the strategy is to buy strength, not weakness. SOFI's current price is trading within 25% of its 52-week high of $32.73, placing it as a relative strength leader instead of a speculative rebound candidate.
• Superior Relative Strength: With a ChartMill Relative Strength rating of 92.41, SOFI is performing better than over 92% of all stocks. Minervini states that the largest winners almost always have high relative strength scores, usually above 70, as it shows institutional interest and leadership.

High Growth Momentum Fundamentals

While the Trend Template finds the "when" to buy, the High Growth Momentum filter finds the "why" by concentrating on companies with strong fundamental potential. SOFI's financial numbers show a company in a strong growth stage.

• Strong Earnings Growth: The company has reported very high year-over-year earnings growth, with the most recent quarter up 120%. Even more notable is the improvement seen in earlier quarters, including a 700% growth rate in the previous period. This sequence of improving earnings is a key feature of Minervini's "superperformance" stocks, as it often draws major institutional interest.
• Consistent Earnings Surprises: SOFI has exceeded analyst EPS predictions in all of the last four quarters, with an average surprise of almost 39%. This steady overperformance builds trust and often results in higher changes to future predictions, creating a positive cycle for the stock price.
• Strong Revenue Growth: Top-line growth remains solid, with a 38% increase in sales for the last quarter. This shows that earnings growth is not only from reducing expenses but is backed by good, growing business activities.
• Positive Analyst Revisions: The average prediction for next year's earnings has been changed upward by over 14% in the last three months. Minervini gives great weight to upward revisions, seeing them as a main driver that indicates increasing analyst belief in the company's future outlook.
• Improving Profitability: The company's profit margin in the last quarter was a solid 14.5%, showing a clear gain from the 11.4% margin in the prior quarter. A growing profit margin shows pricing ability and operational effectiveness, two qualities found in long-term market leaders.

Technical Condition and Setup Evaluation

According to the detailed ChartMill technical report, SOFI is given a technical rating of 6 out of 10. This score shows a mostly positive medium-term view, although some recent stability has brought neutrality to the short-term trend. The report states that the stock is trading in the higher part of its 52-week range and is a leading performer in its industry. However, the setup quality rating is currently a 3, meaning the recent price action has been too unstable to provide a clear, lower-risk entry point right now. The evaluation proposes waiting for a time of stability to form before thinking about a new position.

For a full explanation of the technical picture, including noted support and resistance points, you can see the full technical analysis report for SOFI.

Conclusion

SOFI TECHNOLOGIES INC presents a strong case for investors using a high-growth momentum strategy. It successfully meets the strict technical filters of the Minervini Trend Template, confirming it is in a definite uptrend with high relative strength. Fundamentally, it displays the type of strong, improving earnings growth and positive analyst opinion that drives large price gains. While the present technical setup indicates waiting for a better entry, the basic growth story and technical match make it a stock worth watching closely.

This evaluation was created from a specific screen made to find such opportunities. To find other stocks that currently fit these High Growth Momentum and Trend Template rules, you can check the pre-configured screen on ChartMill.

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