TAT TECHNOLOGIES LTD (NASDAQ:TATT) Exhibits High Growth Momentum and Strong Technicals

TAT TECHNOLOGIES LTD (NASDAQ:TATT) has recently been identified by a screening method that joins Mark Minervini's strict Trend Template with a High Growth Momentum (HGM) filter. This two-part process aims to find companies that are not only in strong technical uptrends but also show the fundamental traits of high-growth businesses. The method depends on the idea that stocks with solid price momentum, backed by strong and quickening earnings and revenue growth, often offer interesting possibilities for investors looking for capital gains.

Technical Strength and the Trend Template

The Minervini Trend Template is a structured way to locate stocks in a confirmed stage 2 uptrend, and TATT shows a strong match with its main technical rules. The template's conditions are made to confirm a stock is in a controlling bullish phase across various timeframes.

• Price Above Key Moving Averages: TATT's present price of $42.25 trades significantly above its increasing 50-day ($37.47), 150-day ($31.52), and 200-day ($30.57) simple moving averages. This layered order is a typical indicator of continued bullish momentum.
• Upward-Sloping Averages: The 200-day moving average itself is in a definite uptrend, having moved up from its prior value of $30.49. This verifies a good long-term path.
• Strong Relative Performance: With a ChartMill Relative Strength (CRS) rating of 95.46, TATT is doing better than almost 96% of all stocks in the market. This outstanding relative performance is a fundamental part of the Minervini method, as market leaders usually lead the wider indices.
• Proximity to Highs: The stock is presently trading within 6% of its 52-week high of $45.00, showing it has the force and momentum typical of leading issues. Also, it sits more than 160% above its 52-week low of $16.25, showing a strong recovery and trend.

This combination of technical elements leads to a perfect ChartMill Technical Rating of 10 out of 10, putting TATT with the most technically sound stocks in the present market.

High Growth Momentum Fundamentals

Beyond a technically perfect chart, the screening process needs proof of fundamental quickening, which is important for maintaining a strong uptrend. TATT displays several main high-growth features that meet this need.

• Explosive Earnings Growth: The company has shown notable earnings per share (EPS) growth. On a trailing twelve-month (TTM) basis, EPS has jumped 65.6%. Even more notable is the quarterly quickening, with EPS growth in the latest quarter at 19%, coming after growth rates of 70% and 664% in the two previous quarters. This sequence of high and quickening growth is exactly what high-growth investors look for.
• Strong Revenue Expansion: Top-line growth is equally solid. TTM revenue has grown by 26%, and recent quarterly sales growth has been consistently high at 18%, 24%, and 29% over the last three quarters. This shows that the company is not only bettering profitability through cost reduction but is also seeing solid need for its products and services.
• Positive Analyst Revisions: The average analyst estimate for next year's EPS has been adjusted upward by 8.4% over the past three months. Such good revisions often come before continued solid performance, as analysts respond to bettering company outlooks.
• Healthy Profitability: The company keeps good profit margins, with the last reported quarter showing a net margin of nearly 8%. This shows a capability to change strong revenue growth into earnings well.

Sector Context and Market Posture

TAT Technologies works in the Aerospace & Defense industry, supplying services and products important to this field. The stock's technical and fundamental force is not happening alone, it is a top performer within its group, doing better than 85% of the 68 stocks in its industry. This leader position is a main belief of the Minervini strategy, which states that the best possibilities are often with the strongest stocks in strong market groups.

Technical Analysis Summary

A detailed look at the technical report for TATT supports the bullish view. The analysis gives the stock the highest possible rating, noting its good short and long-term trends and outstanding yearly performance. The report finds several set support levels between $25.63 and $40.01, which give a structure for risk management. While the setup quality rating is presently a 4, hinting the stock may be stretched in the short term and waiting for a new consolidation phase for a better entry, the basic technical health is considered excellent.

For a full breakdown of the technical view, including exact support and resistance levels, you can examine the full technical analysis report for TATT.

Finding Similar Opportunities

TAT TECHNOLOGIES LTD presents an interesting case study of a stock that matches both momentum-driven technical rules and high-growth fundamental rules. For investors curious about finding other companies that meet this strict two-part screen, the predefined scan is ready to run. You can find more potential candidates using the 'High Growth Momentum + Trend Template' screen here.

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Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice of any kind. The author has no position in TATT. All investment decisions involve risk, and you should conduct your own research and consult with a qualified financial advisor before making any investment decisions.