Mark Minervini’s stock selection strategy focuses on identifying high-growth stocks with strong technical setups. His Trend Template helps traders spot stocks in confirmed uptrends, ensuring they align with momentum and relative strength principles. ORGANOGENESIS HOLDINGS INC (NASDAQ:ORGO) presents an interesting case, meeting key technical and fundamental criteria.
Why ORGO Fits the Minervini Trend Template
Strong Technical Rating
ORGO scores a perfect 10 in ChartMill’s Technical Rating, indicating robust price momentum. Key technical factors include:
- Price Above Key Moving Averages: The stock trades above its 50-day ($4.54), 150-day ($3.75), and 200-day ($3.52) moving averages, confirming a bullish trend.
- Rising Moving Averages: The 50-day, 150-day, and 200-day MAs are all trending upward, reinforcing long-term strength.
- Relative Strength: With a relative strength ranking of 97.63, ORGO outperforms nearly 98% of all stocks, a hallmark of market leadership.
- Price Near 52-Week High: Currently at $5.32, ORGO is within 25% of its 52-week high ($6.71), a key Minervini criterion.
High Growth Fundamentals
Beyond technicals, ORGO exhibits strong earnings and revenue growth:
- EPS Growth (TTM): Up 325% year-over-year, with recent quarterly growth exceeding 1,153%.
- Revenue Growth (TTM): Increased 11.3%, with consistent beats on revenue estimates in the last four quarters.
- Analyst Revisions: EPS and revenue estimates for next year have been revised upward by 150% in the past three months, signaling improving sentiment.
While profit margins have fluctuated, recent quarters show stabilization, with the latest quarter at 4.64%.
Technical Analysis Summary
ChartMill’s technical report highlights:
- Support Levels: Key support zones at $4.95-$4.97 and $4.31-$4.37 provide downside protection.
- Volume Trends: Recent volume has dipped, which could signal a short-term consolidation before further upside.
- Setup Quality: Currently, ORGO does not offer an ideal entry due to extended price movement, suggesting waiting for a pullback.
For more stocks meeting similar criteria, check the Minervini Trend Template screener.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making trading decisions.