The search for high-growth stocks often involves a dual approach: identifying companies with strong business momentum and ensuring they are in a technically sound position to benefit from that momentum. One systematic method that joins these elements is the strategy used by trader Mark Minervini. His approach selects for stocks showing strong uptrends through a specific "Trend Template" and then adds strict fundamental checks for earnings and sales acceleration. This process tries to find market leaders early in their major price moves, focusing on strength rather than trying to pick lows. A recent screen using this method, which joins Minervini's technical criteria with a proprietary High Growth Momentum (HGM) rating, has identified VERTIV HOLDINGS CO-A (NYSE:VRT) as a candidate for closer review.
Assessing the Technical Trend
The foundation of the Minervini strategy is the Trend Template, a set of required technical conditions made to confirm a stock is in a sustained, strong uptrend. Vertiv's current chart shows it meets these important benchmarks.
- Price Above Key Moving Averages: The stock's last price of $175.61 trades well above its 50-day ($174.80), 150-day ($148.42), and 200-day ($133.06) simple moving averages (SMAs). This ordered alignment shows positive momentum across short, medium, and long-term timeframes.
- Upward-Sloping Long-Term Averages: Both the 150-day and 200-day SMAs are increasing, confirming the long-term trend's condition. The 200-day SMA, an important bull market indicator, has moved up from 132.60 to its current level.
- Proper Moving Average Alignment: The shorter-term 50-day SMA sits above both the 150-day and 200-day SMAs, a standard configuration seen in strong trending stocks.
- Proximity to Highs: At $175.61, VRT is trading 227% above its 52-week low of $53.60 and within 13% of its 52-week high of $202.45. Minervini's idea focuses on buying strength, preferring stocks that have already shown major recovery and are testing new highs, rather than those staying near lows.
- Strong Relative Strength: With a ChartMill Relative Strength (CRS) score of 87.61, Vertiv performs better than nearly 88% of all stocks. High relative strength is a sign of market leadership, suggesting institutional demand and a stock that is leading the broader market, not just following it.
This technical profile shows a stock in a confirmed Stage 2 advance, the exact phase where Minervini aims to invest.
Evaluating the Growth Momentum
Meeting the Trend Template is only the first step. The strategy requires that technical strength be supported by improving fundamental performance. The High Growth Momentum rating and provided metrics indicate Vertiv has this important engine.
- Strong Earnings Growth: The company's trailing twelve-month (TTM) EPS of $3.82 shows year-over-year growth of about 58%. More importantly, recent quarterly momentum is solid, with the last quarter showing 63% growth compared to the same period a year before. This pattern of high, improving quarterly growth is a key signal Minervini looks for.
- Consistent Earnings Surprises: Vertiv has exceeded analyst EPS estimates in each of the last four quarters, with an average beat of nearly 15%. Consistent positive surprises often lead to upward revisions and renewed investor interest.
- Growing Profit Margins: The company's profitability is getting better clearly. The profit margin in the most recent quarter was 14.9%, up from 12.3% the quarter before and a major increase from 6.3% three quarters ago. This growth shows operating leverage and pricing power, important traits for continued growth.
- Strong Revenue Acceleration: TTM revenue growth is at 29%. Recent quarterly sales growth has been consistently solid, at 29%, 35%, and 24% over the past three quarters, showing continued demand for its important digital infrastructure solutions.
- Positive Analyst Revisions: The average estimate for next year's EPS has been moved upward by over 8% in the last three months. Rising estimates show increasing analyst confidence and can be a sign of further price gains.
These fundamentals suggest the technical move is backed by real business performance, matching the Minervini idea that "big earnings attract big attention."
Technical Health Summary
ChartMill's separate technical report on VRT gives it a rating of 6 out of 10, noting a "consistent overall performance" with a positive long-term trend, though it sees some near-term consolidation. The report lists several support levels below the current price, the most important being in the $164-$169 range, and finds resistance near $182. The setup quality rating is currently a 3, showing the stock is not in a tight, low-volatility consolidation pattern perfect for a new breakout entry at this exact moment. This matches the observation that the stock is trading in the middle of its recent range. For a full review of the support, resistance, and trend analysis, you can see the detailed technical report for VRT.
Conclusion
Vertiv Holdings presents an interesting case of a stock that fits a disciplined growth and momentum strategy. It meets the strict technical filters of the Minervini Trend Template, confirming its place in a primary uptrend. Furthermore, its underlying business shows the signs of high growth momentum: strong and improving earnings, growing margins, and solid revenue growth. While the current technical setup suggests it may be in a time of consolidation rather than at a new turning point, its joined technical and fundamental profile makes it a stock for growth-focused investors to watch for possible future entry points that fit their risk management rules.
Interested in finding more stocks that fit this high-growth, trending profile? You can run the same screen using the High Growth Momentum + Trend Template screener on ChartMill.
Disclaimer: This article is for informational and educational purposes only. It is not intended as investment advice, nor does it constitute a recommendation to buy, sell, or hold any security. The analysis is based on data and methods believed to be reliable, but its accuracy cannot be guaranteed. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
