TARSUS PHARMACEUTICALS INC (NASDAQ:TARS) Shows Strong Technical Health and Growth Momentum

A systematic method for finding high-potential growth stocks combines detailed technical study with fundamental momentum filters. The framework uses Mark Minervini's Trend Template, which sorts for stocks showing strong upward moves across various time periods, while additional growth filters find companies displaying improving business fundamentals. This two-part method looks for securities where technical health matches underlying business momentum, possibly indicating early phases of important price gains.

Technical Health and Trend Adherence

TARSUS PHARMACEUTICALS INC (NASDAQ:TARS) shows clear alignment with Minervini's trend-following ideas. The stock satisfies all important moving average conditions that describe confirmed upward moves:

• Current price ($79.66) trades notably higher than rising 50-day ($66.66), 150-day ($52.98), and 200-day ($51.75) simple moving averages
• The 50-day SMA is positioned higher than both the 150-day and 200-day SMAs, confirming medium-term health
• All moving angles point upward, showing continued buying interest across different timeframes

The stock's location compared to its 52-week range further supports its technical leadership. Trading about 3.4% under its 52-week high of $82.42 while being 107% higher than its 52-week low of $38.51, TARS displays the "strength-begets-strength" quality Minervini notes. This closeness to new highs implies limited overhead supply, while the large gap from recent lows points to continued institutional buying.

Growth Momentum Business Data

Beyond price action, TARS shows the strong fundamental growth that usually comes before major price increases. The company's revenue path displays notable improvement:

• Trailing twelve-month revenue growth of 182%
• Most recent three-month sales growth of 147% year-over-year
• Steady revenue estimate beats over four straight quarters, averaging 5.95% higher than expected

Earnings momentum supports the revenue picture, with EPS growth rates displaying sequential gains:

• Recent quarterly EPS growth of 51% year-over-year
• Three of the last four quarters showing EPS surprises, averaging 8.3% higher than estimates
• Analyst revenue projections for next year rose 7.4% over the last three months

This fundamental improvement happens within Minervini's "Stage 2" upward move structure, where bettering business fundamentals frequently trigger the next phase of price gains. The company's work on new therapeutic candidates, especially its lead product XDEMVY for Demodex blepharitis, meets unaddressed medical needs in specific markets, possibly supporting continued growth.

Relative Performance and Market Position

With a ChartMill Relative Strength rating of 94.43, TARS performs better than 94% of all stocks in the database, a main trait of market leaders. This outstanding relative performance signals institutional favor and matches Minervini's focus on holding the strongest stocks within leading industry sectors. The stock's 65% twelve-month return greatly outpaces the wider market, yet the steady nature of the gains indicates maintainable momentum instead of speculative activity.

Technical Evaluation Summary

The technical report gives TARS a top rating of 10/10, reflecting very good technical condition across all studied timeframes. Main points include:

• Both near-term and longer-term trends identified as positive
• Several confirmed support areas between $68.09-$73.37 offering possible risk management points
• Steady outperformance compared to both the pharmaceuticals sector and general market

While the stock currently shows a lower setup rating because of recent price swings, the basic technical structure remains sound. The full technical study is accessible in the detailed TARS technical report.

Conclusion

TARS presents a strong case for growth-focused investors using a trend-following framework. The stock meets Minervini's detailed technical template while showing the fundamental improvement that often comes before major price moves. The mix of clean trend formation, outstanding relative performance, and strong revenue growth creates a profile worth watching for possible entry during orderly pause periods.

For investors looking for similar chances, the High Growth Momentum + Trend Template screen methodically finds other securities displaying this effective combination of technical and fundamental health.

Disclaimer: This study is for information and learning purposes only and is not investment advice. All investment choices should come from personal study and risk comfort. Past results do not ensure future outcomes. Please read our full disclaimer and terms of service for complete understanding of our obligations.