TEMPUS AI INC (NASDAQ:TEM) Excels on Minervini Trend Template with High Growth Momentum

Tempus AI Inc (NASDAQ:TEM) has become a notable candidate for investors using the Mark Minervini Trend Template with a high growth momentum screen. This two-part method finds stocks showing solid technical uptrend features along with quickening fundamental growth, a pairing often linked with top-tier market results. The approach focuses on price movement over important moving averages, better relative strength, and being near new highs technically, while also requiring strong earnings expansion, revenue speed-up, and favorable estimate changes fundamentally.

Technical Strength and Trend Compliance

Tempus AI shows outstanding technical condition, achieving a full 10/10 on ChartMill's Technical Rating system. The stock meets all essential parts of Minervini's Trend Template, which calls for stocks to be in clear stage 2 advances with specific momentum traits:

• Price Above Key Moving Averages: TEM trades at $79.62, notably above its 50-day ($65.36), 150-day ($60.35), and 200-day ($56.65) simple moving averages
• Rising Moving Averages: All main moving averages display upward slopes, confirming continued positive momentum
• Moving Average Alignment: The 50-day SMA is higher than both the 150-day and 200-day SMAs, showing faster intermediate-term momentum
• Price Performance: The present price is 154% over its 52-week low of $31.36 and within 13% of its 52-week high of $91.45
• Relative Strength: With a relative strength ranking of 89.89, TEM does better than almost 90% of all stocks in the market

These technical traits match Minervini's idea of trading with the main trend, steering clear of attempts to find bottoms, and concentrating on stocks displaying clear institutional buying.

Fundamental Growth Momentum

Beyond technicals, Tempus AI displays the explosive fundamental expansion that supports continued price gains. The company's healthcare technology system, which applies artificial intelligence to precision medicine, shows notable operational speed:

Revenue Speed-up

• Quarterly revenue expansion of 89.57% year-over-year in the latest quarter
• Sequential speed-up from earlier quarters showing 75.38%, 35.85%, and 32.98% growth
• Trailing twelve-month revenue expansion of 59.84%
• Consistent beat history with revenue estimates surpassed in 2 of the past 4 quarters

Earnings Momentum

• Quarterly EPS expansion of 65.08% year-over-year
• Major betterment from negative earnings patterns in previous years
• Full 4/4 earnings beat record over the past four quarters
• Average earnings beat of 14.69%, showing steady operational overachievement

Analyst Confidence

• Next quarter revenue expansion estimates of 83.44%
• Next quarter EPS expansion estimates of 32.22%
• Favorable revenue estimate changes of 1.03% over the past three months

These fundamental measurements align with Minervini's focus on "big earnings attract big attention"—the idea that speeding up operational results pulls institutional interest and supports continued price gains.

Industry Leadership and Market Position

Working in the Life Sciences Tools & Services industry, Tempus AI shows sector leadership by doing better than 88% of its 55 industry peers. The company's AI-based precision medicine answers approach a increasing market chance where healthcare and technology meet, placing it for further growth as artificial intelligence use speeds up in medical diagnostics and treatment personalization.

Technical Analysis Summary

According to ChartMill's detailed technical report, TEM displays:

• Solid positive trends across both short-term and long-term periods
• Several support levels between $73.23-$73.62 and $59.70-$60.26 giving downside safety
• Little resistance above present prices, hinting at room for further advance
• High trading liquidity with average volume over 10 million shares daily
• Recent trading span between $57.88-$85.28 with present price near span highs

The full technical analysis report offers more detailed looks into entry points, stop-loss levels, and momentum traits for traders applying the Minervini method.

View the complete technical analysis report for TEM

Investment Considerations

While Tempus AI presents notable technical and fundamental traits, investors should note the company's recent IPO status (June 2024) and present negative earnings profile common of high-growth technology companies spending heavily on expansion. The stock's higher volatility, with an average true range of $5.63, needs suitable position sizing and risk management plans in line with Minervini's focus on capital protection.

The pairing of full technical ratings, exceptional relative strength, speeding up revenue expansion, and steady earnings beats forms a profile that matches historical market leaders found through the Minervini method. The stock's results within a solid sector and clear institutional buying patterns further back its chance for continued outperformance.

Discovering Similar Opportunities

For investors looking for other candidates that meet these strict growth and momentum standards, our predefined screen finds stocks displaying both Minervini Trend Template agreement and high growth momentum traits.

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Disclaimer: This analysis is provided for educational and informational purposes only and does not constitute investment advice, financial advice, trading advice, or any other advice. The content is not meant to be a recommendation to buy or sell any security. Conduct your own due diligence and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.