WATERDROP INC (NYSE:WDH) Shows Strong Technical and Growth Momentum
By Mill Chart
Last update: Oct 16, 2025
Investors looking for high-growth chances often mix technical momentum methods with basic growth measures to find stocks with strong possible gains. The Mark Minervini Trend Template offers an organized method for seeing equities in clear uptrends, while high-growth momentum filters confirm basic business speed. This combined method helps separate companies showing both price improvement and operational gains, possibly marking early points of continued progress.
Technical Momentum Agreement
Waterdrop Inc (NYSE:WDH) shows several traits that fit with Minervini's trend-following ideas. The stock now trades above its important moving averages, with the 50-day SMA at $1.85 placed above both the 150-day ($1.57) and 200-day ($1.48) averages. This arrangement meets Minervini's need for agreed momentum across different periods, pointing to continued institutional buying.
The stock's place compared to its 52-week range gives more support for the positive technical view. Now trading at $1.86, Waterdrop is about 92% higher than its 52-week low of $0.97 while staying within 15% of its 52-week high of $2.18. This location fits Minervini's rules for stocks displaying major rebound momentum while staying close to new highs, indicating more upward chance instead of tired movement.
Growth Momentum Basics
Besides technical agreement, Waterdrop shows basic speed that earns high-growth investor notice. The company has shown notable earnings momentum over recent quarters:
- Quarterly EPS growth rates: 200% (Q-3), 50% (Q-2), 50% (Q-1), and 100% (latest quarter)
- Revenue growth speed increase: 2.6% (Q-3) to 25.7% (latest quarter)
- Profit margin growth from 13.2% to 16.7% over the last four quarters
This sequence of speeding growth across several measures fits with Minervini's focus on basic gain as a driver for continued price gains. The growing profit margins especially point to operational efficiency improvements and possible pricing strength, both signs of companies in early growth stages.
Relative Strength and Market Place
Waterdrop's relative strength rank of 87.91 shows the stock is doing better than almost 88% of the market, an important Minervini rule that finds market leaders. In the insurance field particularly, Waterdrop does better than 93% of similar companies, indicating firm-specific strength rather than just industry support. This relative strength is vital within the Minervini method, as market leaders usually keep leading during continued uptrends.
Technical Review Summary
The technical report for Waterdrop gives a score of 6 out of 10, showing good technical health with some short-term points. The setup quality score of 6 indicates the stock is forming a holding shape that might offer a good entry chance. Important technical notes include:
- Long-term trend stays positive even with recent short-term pressure
- Several set support levels between $1.78 and $1.85 give downside safety
- Resistance is present near $2.04-$2.05, showing the next possible breakout point
- Recent large buyer buying found through volume study
Detailed technical study shows the stock is now checking the lower edges of its recent trading range, possibly preparing for a turn toward resistance levels.
Investment Points
For growth-focused investors, Waterdrop shows a strong case of a company displaying both technical momentum and basic speed. The agreement with Minervini's trend template rules suggests the stock is in a clear uptrend, while the speeding earnings and revenue growth show basic business momentum. The mix of these parts, along with good relative strength against industry peers, places Waterdrop as a possible choice for investors looking for exposure to high-growth chances within an organized technical method.
Disclaimer: This study is for information and learning only and does not make investment advice. All investment choices should come from personal study and risk comfort. Past results do not ensure future outcomes. Please talk with a qualified financial advisor before making any investment choices.
