Robinhood Markets Inc - A (NASDAQ:HOOD): A Minervini Trend Template Candidate

Robinhood Markets Inc - A (NASDAQ:HOOD) is a financial services platform known for its commission-free trading and user-friendly mobile app. The company has gained attention for its rapid growth and disruptive approach to retail investing.

Mark Minervini’s Trend Template is a well-known strategy for identifying stocks in strong uptrends with high relative strength. The approach focuses on technical and fundamental criteria to find stocks with the potential for significant price appreciation.

Why HOOD Fits the Minervini Trend Template

Strong Technical Rating

According to the ChartMill Technical Analysis Report, HOOD has a perfect technical rating of 10 out of 10, indicating robust performance in both short and long-term trends. Key highlights include:

• Price Above Key Moving Averages: HOOD is trading above its 50-day ($43.83), 150-day ($39.69), and 200-day ($34.92) moving averages.
• Positive Trends: Both short-term and long-term trends are bullish.
• Relative Strength: HOOD outperforms 97% of all stocks and 98% of its Capital Markets industry peers.

Solid Setup Potential

While the setup rating is currently 5 out of 10, indicating some volatility, the stock has shown a bull flag pattern, which could present a buying opportunity if it consolidates further.

Fundamental Strength

HOOD has demonstrated strong earnings and revenue growth:

• EPS Growth (TTM): 1,073% year-over-year.
• Revenue Growth (TTM): 58.2% year-over-year.
• Profit Margin (Q): 90.3%, a significant improvement from prior quarters.
• Earnings Surprises: Beat estimates in 3 of the last 4 quarters by an average of 90.6%.

Support and Resistance Levels

• Support Zones: Strong support between $45.53–$46.61 and at $39.84.
• Resistance: Near $49.46, with potential for further upside if broken.

Conclusion

Robinhood Markets Inc - A (NASDAQ:HOOD) meets several key criteria of the Minervini Trend Template, including strong technicals, high relative strength, and impressive earnings growth. While the current setup is not ideal due to volatility, the stock’s overall trend remains bullish.

For more detailed analysis, see the full technical report here.

Disclaimer: This is not investment advice. Always conduct your own research before making any investment decisions.