VICOR CORP (NASDAQ:VICR) Shows Strong Technical and Fundamental Momentum

A method for stock selection often joins strict technical rules with attention to the momentum of the business itself. The method used here comes from the ideas of Mark Minervini's Trend Template, which works to find stocks in strong, confirmed uptrends, and adds a fundamental filter for strong growth momentum. This two-step process works to find companies that are showing both notable price strength and improving business results, a pairing common in many past significant market successes.

VICOR CORP (NASDAQ:VICR) appears as a candidate from this process. The Andover, Massachusetts-based designer and maker of modular power components has had its shares show notable strength, a move that seems connected to a clear turn in its financial performance.

A Clear Trend Template Setup

The Minervini Trend Template gives a defined, rules-based system to verify a stock is in a steady stage 2 advance, steering clear of downtrends and basing patterns. Looking at VICR's chart and important measures shows it meets the key points:

• Price Above Key Moving Averages: The present price is well above the rising 50-day ($94.07), 150-day ($63.63), and 200-day ($59.26) simple moving averages. This ordered arrangement is a typical sign of solid bullish momentum across timeframes.
• Moving Average Arrangement: The shorter 50-day moving average is above both the 150-day and 200-day averages, and the 150-day is above the 200-day. This ordered bullish arrangement confirms the trend's force and sequence.
• Nearness to Highs: At its present level, VICR is trading within 6% of its 52-week high of $116.33, showing it is acting as a market leader. Also, the stock is trading 182% above its 52-week low, confirming a strong recovery trend is already in progress.
• Strong Relative Strength: Maybe most important is VICR's relative strength (RS) ranking of 98.48. This means the stock's price action over the past year has been better than nearly 99% of the whole market. In Minervini's method, a high RS score is essential; it distinguishes true leaders from the wider group.

This combination of technical points indicates institutional buying and a lack of overhead supply, making a setting where the easier direction is upward.

The Fundamental Driver: Strong Growth Momentum

While the chart shows the "what," the fundamentals explain the "why." The high growth momentum filter looks for companies with quickening earnings and sales, which often act as the driver for continued price gains. VICR's recent numbers show a company in a strong operational recovery.

• Strong Earnings Growth: The latest quarterly EPS grew 142% year-over-year. More notable is the trailing twelve-month (TTM) EPS growth of 75%. Analysts are noticing, with the average estimate for next year's earnings moved higher by nearly 65% over the last three months, a clear sign of increasing belief in the company's near-term future.
• Solid Sales Growth and Margin Recovery: Revenue growth has gained speed, with the latest quarter up over 18% year-over-year. This is joined by a clear recovery in profitability. After a time of lower margins, the last reported quarterly profit margin increased to 25.6%. The company's free cash flow production has also grown sharply, with TTM free cash flow per share up 686% from the prior period.
• Steady Performance: The company has exceeded analyst EPS estimates in two of the last four quarters and revenue estimates in three of the last four, with an average revenue beat of nearly 14%. This habit of beating expectations supports positive feeling and can lead to more institutional attention.

This fundamental picture fits well with the growth-oriented part of the strategy. The market is rewarding VICR not for a possible future, but for a clear and sharp improvement in present business results.

Technical Condition and Present Position

According to ChartMill's own analysis, VICR is in good technical condition. The service gives the stock a high technical rating of 9 out of 10, noting its positive long-term and short-term trends. The stock is a clear leader in the Electrical Equipment industry, performing better than 96% of its peers.

The analysis does note, however, that while the trend is very good, the immediate position rating is lower. This shows that after its notable rise, the stock may be advanced in the short term and might gain from a time of consolidation or a move back to a key support level before offering a better, lower-risk entry point. Key support areas are seen between $102-$103 and near $99, which could become points of interest for possible buyers on a decline.

For a full look at the support and resistance levels, volume patterns, and complete technical review, you can see the complete ChartMill Technical Report for VICR.

Conclusion

VICOR CORP presents a notable example of a stock meeting strict dual standards. Technically, it satisfies the Minervini Trend Template, trading in a solid stage 2 uptrend with strong relative strength. Fundamentally, it shows the high-growth momentum that often works as the driver for such price action, with earnings and cash flow growth speeding up clearly. While the present sharp move may call for waiting for a clearer entry, the match of a strong trend with a fundamental driver makes VICR a stock worth attention for growth-focused investors.

Interested in finding other stocks that fit this mix of solid trends and high growth? You can use the same filter with the High Growth Momentum + Trend Template screener on ChartMill.

Disclaimer: This article is for informational and educational purposes only. It is not a recommendation to buy or sell any security. The analysis is based on data provided and certain screening methodologies. All investing involves risk, including the potential loss of principal. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.