Willdan Group Inc (NASDAQ:WLDN): A High-Growth Momentum Stock Aligning with Minervini’s Trend Model

Willdan Group Inc (NASDAQ:WLDN): A High-Growth Momentum Stock Aligning with Minervini’s Trend Model

Mark Minervini’s trend-based strategy identifies stocks with strong technical and fundamental traits. The method blends technical checks, like moving averages, relative strength, and price momentum, with growth metrics to find stocks likely to continue rising. Willdan Group Inc (WLDN) aligns with this model, displaying both a solid technical pattern and improving earnings growth, making it a choice for momentum-focused investors.

How WLDN Matches Minervini’s Trend Model

The Minervini Trend Model requires stocks to meet specific technical conditions to confirm a strong upward trend. WLDN meets these standards:

• Price Above Important Moving Averages:

  • The current price ($82.04) is higher than the 50-day SMA ($62.69), 150-day SMA ($46.18), and 200-day SMA ($45.60).
  • The 50-day SMA is above the 150-day and 200-day SMAs, showing bullish alignment across periods.
  • The 200-day SMA has been rising for months, indicating long-term strength.

• High Relative Strength:

  • WLDN’s ChartMill Relative Strength (CRS) score is 97.62, meaning it beats nearly 98% of all stocks.
  • This matches Minervini’s focus on stocks leading their industries.

• Price Close to 52-Week High:

  • The stock is trading within 1.1% of its 52-week high ($82.99), a sign of continued momentum.
  • It has also jumped 142.9% over the past year, showing strong investor demand.

• Potential for Reduced Volatility:

  • While the stock has risen sharply, the technical report notes the setup quality is currently medium (5/10) due to recent swings.
  • A period of stability could improve the setup for a possible further rise.

Strong Growth Fundamentals Strengthening the Argument

Beyond technicals, WLDN shows improving earnings and revenue growth—key for momentum investors:

• Earnings Growth:

  • EPS (TTM) growth (YoY): +45.4%
  • Quarterly EPS growth (Q2Q): +57.5% (vs. same quarter last year)
  • The company has exceeded EPS estimates in all of the last four quarters, with an average beat of 46.4%.

• Revenue Growth:

  • Revenue (TTM) growth: +12.4%
  • Quarterly revenue growth (Q2Q): +23.8%
  • Revenue forecasts have been raised by 2% for next year, showing analyst optimism.

• Better Profit Margins:

  • Recent quarterly profit margin: 3.08%, up from 2.14% a year ago.
  • Free cash flow per share has climbed 69% YoY, reflecting improved efficiency.

Technical Overview: Strong Uptrend with Minor Pause Needed

ChartMill’s technical report gives WLDN a perfect 10/10 score, noting:

• Strong long-term and short-term upward trends.
• A new 52-week high, confirming bullish momentum.
• Support levels at $79.02–$79.43 (moving averages) and $69.76 (trendline).

However, the setup quality is rated 5/10, meaning while the stock is technically sound, it may need a brief pause before another significant move. Investors should watch for a possible dip to key support levels before considering new positions.

View the full technical report here.

Discover More High-Growth Momentum Stocks

For investors looking for similar high-growth momentum stocks that fit Minervini’s criteria, check out our High Growth Momentum + Trend Model Screen for more options.

Disclaimer: This is not investment advice. The analysis is for informational purposes only. Always conduct your own research or consult a financial advisor before making investment decisions. Read our full disclaimer here.