Talkspace Inc (NASDAQ:TALK) Shows Strong Technical and Fundamental Momentum Fit for Growth Investors

In growth investing, mixing a strict technical system with attention to fundamental momentum can be a strong method for finding possible leaders. One example is the Mark Minervini method, which joins his unique Trend Template with a detailed look into earnings and sales growth. The Trend Template works as a technical filter, making sure a stock is in a clear, strong uptrend over several periods. This is combined with a review of high-growth momentum, looking for firms showing sharp gains in profit and income. This two-part method tries to find stocks not only as they start to rise, but as their core business fundamentals start the rise, which may result in major price gains.

Talkspace Inc (NASDAQ:TALK) offers a notable example for this mixed method. The company providing virtual mental health care has lately shown a technical and fundamental picture that fits the standards looked for by growth and momentum investors.

Technical Fit with the Minervini Trend Template

A main idea of the Minervini method is to put money in the direction of the current trend, concentrating on strength instead of trying to find a bottom. The Trend Template gives a step-by-step list to check this strength. Presently, TALK's chart shows a formation that hits these important technical marks:

• Price Above Important Moving Averages: The stock is trading above its rising 50-day ($3.26), 150-day ($2.90), and 200-day ($2.89) simple moving averages (SMAs). This agreement confirms the stock is in a clear uptrend over short, medium, and long-term periods.
• Positive Moving Average Order: The 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is also above the 200-day SMA. This ordered positive arrangement, often named a "stacked" setup, shows increasing momentum and firm buyer belief.
• Nearness to Highs: At its recent price around $3.63, TALK is trading within 25% of its 52-week high of $4.355, an important Minervini filter that directs focus to market leaders, not weaker performers. At the same time, the price stays more than 30% above its 52-week low of $2.22, confirming a large recovery trend is active.
• Strong Relative Performance: With a ChartMill Relative Strength (CRS) score of 87.21, the stock is doing better than about 87% of the market. High relative strength is a sign of leadership, showing institutional buying and a stock that is moving apart from wider market declines.

This technical view indicates TALK is in a sound Stage 2 climb, the main phase where Minervini aims to place funds.

Fundamental Momentum for High Growth

While the Trend Template makes sure a stock is technically good, the Minervini method gives similar weight to the fundamental "force" pushing the move. This is where the High Growth Momentum (HGM) review is used, searching for signs of speeding business results. TALK's recent financial numbers show several good turning points:

• Sharp Earnings Increase: The company has moved to profit, with Trailing Twelve Month (TTM) Earnings Per Share (EPS) at $0.03, showing 400% year-over-year growth. Even more notable is the recent quarterly speed increase, with the last reported quarter showing EPS growth of 100% compared to the same quarter last year.
• Continued Sales Growth: Revenue growth stays firm, with TTM sales up over 18% year-over-year. The most recent quarter saw revenue increase 25.3%, suggesting growth may be speeding up. Analyst belief is also growing, with next-year EPS guesses raised upward by almost 14% over the past three months.
• Gaining Profit Measures: After times of losses, the company's last reported quarterly profit margin hit 5.47%, a major gain. This move toward lasting profit is a key point for high-growth companies changing to independent operations.

These fundamental drivers, fast earnings growth, firm sales increases, and gaining margins, give the solid background for the technical rise, matching the Minervini idea that "big earnings draw big notice."

Technical Condition and Setup Value

Beyond the basic Trend Template filters, a closer look at the stock's technical condition is needed. Based on ChartMill's own analysis, TALK gets a high Technical Rating of 9 out of 10, showing very good overall technical condition with both its long-term and short-term trends seen as positive. The analysis also states the stock is now showing a bull flag shape, a positive pause inside an uptrend that may give a possible entry chance.

Also, the stock has a Setup Quality rating of 8, meaning it is trading inside a set pause area with lower volatility. The technical report finds a clear support area around $3.55-$3.62, with close resistance near $3.68. This organized price action, with clear risk points, is what traders search for to plan exact entries and exits.

You can review the full, detailed technical report for TALK here.

A Subject for More Review

Talkspace Inc shows a coming together of points that make it worth notice for investors using a growth and momentum plan. It meets the strict technical filters of the Minervini Trend Template, confirming a firm uptrend is happening. At the same time, its fundamental picture shows the type of high-energy earnings and sales momentum that can drive a stock's results. The mix of a high Technical Rating and a good Setup Quality score suggests the stock is both sound and possibly set for its next step.

Interested in searching for more stocks that match this High Growth Momentum + Trend Template picture? You can run the same search that found TALK to find other possible subjects. Click here to access the screen and view the current results.

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Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. The analysis is based on present data and methods, which may change. All investing has risk, including the possible loss of original money. You should do your own study and talk with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.