Does TEGNA INC (NYSE:TGNA) align with Mark Minervini’s trading strategy?

In this article we will dive into TEGNA INC (NYSE:TGNA) as a possible candidate for growth investing. Investors should always do their own research, but we noticed TEGNA INC showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for TGNA:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Unpacking TGNA's High Growth Momentum Rating

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. TGNA has achieved a 5 out of 10:

Earnings Momentum

• In the most recent financial report, TGNA reported a 181.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• Accelerating EPS growth for TGNA: the current Q2Q growth of 181.0% exceeds the previous quarter Q2Q growth of 141.0%.
• Sales growth accelerated for 3 quarters in a row.
• TGNA has experienced 79.19% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• The q2q revenue growth of 19.93% of TGNA highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• Accelerating Sales growth for TGNA: the current Q2Q growth of 19.93% exceeds the previous quarter Q2Q growth of 13.13%.
• Sales acceleration happened 3 quarters in a row.
• TGNA has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Profitability & Financial Strength

• With positive growth in its operating margin over the past year, TGNA showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• In the past year TGNA has expanded its Profit Margin, which demonstrates increasing profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, TGNA demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• TGNA has a healthy Return on Equity(ROE) of 19.89%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• Maintaining a Debt-to-Equity ratio of 1.02, TGNA demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.

Market Strength

• The Relative Strength (RS) of TGNA has been consistently solid, with a current 88.09 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How does the Setup look for TGNA

ChartMill also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, TGNA exhibits a 2 setup rating, indicating its consolidation status in recent days and weeks.

Although TGNA has an excellent technical rating, it does not present a decent entry opportunity at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation.

Check the latest full technical report of TGNA for a complete technical analysis.

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.