TEMPUS AI INC (NASDAQ:TEM) Emerges as a Top Growth and Momentum Candidate

Tempus AI Inc (NASDAQ:TEM) has appeared as an interesting candidate for investors using a systematic method for growth investment. The company was found through a screening process that joins Mark Minervini's Trend Template with High Growth Momentum standards, forming a two-part system that finds companies showing both solid technical momentum and good fundamental growth traits. This method aims to find stocks displaying strong upward trends while also showing improving business basics.

Technical Strength Through Minervini's View

Tempus AI shows very good fit with Minervini's Trend Template, which works to find stocks in clear upward trends with good comparative strength. The template's standards are made to filter for securities displaying continued upward momentum over several time periods while staying away from overbought positions that might be subject to declines.

The stock satisfies all important moving average conditions:

• Current price ($88.84) is higher than the 50-day ($85.02), 150-day ($67.37), and 200-day ($64.68) moving averages
• All main moving averages show upward angles, confirming continued positive momentum
• The 50-day MA is positioned higher than both the 150-day and 200-day MAs, showing faster medium-term momentum
• The 150-day MA stays above the 200-day MA, confirming the longer-term trend formation

Price location compared to 52-week highs and lows further supports the technical picture:

• Current price is 183% higher than its 52-week low of $31.36, showing good rebound momentum
• The stock trades within 15% of its 52-week high of $104.32, placing it as a market frontrunner instead of a follower

Comparative strength numbers support Tempus AI's market frontrunner status:

• ChartMill Comparative Strength rating of 94.54 shows the stock performs better than about 95% of the market
• This high comparative strength matches Minervini's focus on investing in market frontrunners

Fundamental Growth Catalysts

Beyond technicals, Tempus AI displays the fundamental improvement that growth investors look for. The company's healthcare technology system, which applies artificial intelligence and machine learning to precision medicine, displays notable business momentum in several areas.

Revenue growth shows notable improvement:

• Trailing twelve-month revenue growth of 59.8%
• Most recent three-month revenue growth of 89.6% year-over-year
• Consecutive improvement from earlier three-month periods (75.4%, 35.8%, and 33.0% in prior times)
• Future revenue projections indicate continued good growth path

Earnings momentum displays meaningful progress:

• Recent three-month EPS growth of 65.1% year-over-year
• Good earnings estimate beat history, exceeding predictions in all four last quarters by an average of 14.7%
• Positive earnings revision patterns for coming periods

The company's place in the Life Sciences Tools & Services industry offers built-in growth benefits, with Tempus AI performing better than 92% of its industry counterparts. This sector leadership is important for continued growth investment success, as industry frontrunners usually gain greater market share during growth phases.

Market Situation and Risk Factors

The present market condition, with the S&P500 showing good longer-term and shorter-term trends, offers a supportive setting for growth stocks displaying Minervini-style formations. Tempus AI's technical rating of 9 out of 10 mirrors its solid placement within this helpful market formation.

The stock's period of stability between $81.90 and $104.32 over the last month has formed a possible foundation pattern, with lower fluctuation suggesting supply and demand are finding balance. This kind of stability after a good rise frequently comes before the next upward move, assuming the fundamental story stays unchanged.

Technical Evaluation Overview

According to ChartMill's full technical study, Tempus AI offers an interesting technical picture. The report points out solid support areas between $82.25-$82.83 and $85.02-$85.27, with resistance seen near $91.56-$91.58. The stock's high volume pattern (average 8.47 million shares daily) provides sufficient liquidity for large investor activity, while its place in the higher part of its 52-week range shows continued investor attention.

View the full technical study report for complete support/resistance levels and other technical measurements.

Finding Other Similar Possibilities

For investors looking for other candidates that meet this strict growth and momentum standard, the High Growth Momentum + Trend Template screen frequently finds securities displaying both solid technical trends and improving fundamental growth.

Disclaimer: This study is for information and learning only and does not form investment guidance. The information shown should not be taken as a suggestion to purchase, sell, or keep any security. Investors should perform their own investigation and talk with a qualified financial consultant before making investment choices. Past results are not a guarantee of future outcomes.