First Solar, Inc. (NASDAQ:FSLR) has been identified by a screen that combines two strong and complementary stock selection methods. The first is the Mark Minervini Trend Template, a set of strict technical criteria designed to identify stocks in a strong, established uptrend. The second is the ChartMill High Growth Momentum (HGM) rating, which evaluates the stock on fundamental growth factors. By requiring a stock to pass both a technical trend filter and a fundamental momentum filter, this approach aims to find companies that are not just rising in price, but are doing so on a foundation of accelerating earnings and sales.
Technical Foundation: Passing the Trend Template
The Trend Template is the technical starting point for the Minervini strategy, ensuring a stock is in a healthy "Stage 2" uptrend. This is critical because it prevents traders from buying into a downtrend or a stock that is just beginning to form a base. Instead, it focuses on market leaders that already have momentum. FSLR passes this screen with ease, meeting all the key criteria:
- Current Price vs. Key Moving Averages: The stock's current price of $254.80 is above its 50-day SMA ($235.54), 150-day SMA ($234.63), and 200-day SMA ($232.99), confirming a bullish alignment.
- Moving Average Slope: The 150-day SMA and 200-day SMA are both trending upwards, a non-negotiable sign of a sustained long-term trend.
- Moving Average Hierarchy: The 50-day SMA sits comfortably above both the 150-day and 200-day SMAs, a configuration that signals accelerating momentum.
- 52-Week Range: With a 52-week low of $139.26 and a high of $320.95, the current price is 83% above its low and within 21% of its high. This indicates the stock is not being bought on a dip but is showing strength near its high, a hallmark of leading stocks.
- Relative Strength: FSLR has a ChartMill Relative Strength (CRS) score of 90.76. This means it outperforms over 90% of all other stocks, a key Minervini indicator that shows institutional demand.
By satisfying these conditions, FSLR qualifies as technically fit for the next stage of analysis.
Fundamental Firepower: Why It Suits High Growth Investors
While the Trend Template handles the "when" to trade, the High Growth Momentum rating addresses the "why." This rating looks for the fundamental catalysts that often precede massive price runs. As Minervini teaches, "Big earnings attract big attention," and FSLR has the numbers to attract it.
- Earnings Growth: The trend is impressive. EPS (TTM) stands at $15.48, with strong year-over-year growth of 26.9%. The most recent quarter showed a notable acceleration, with EPS growth of 65.1% compared to the same quarter last year.
- Revenue Growth: The narrative is supported by top-line growth. The company has posted a trailing twelve-month revenue growth of 27.3%. The most recent quarter’s sales were up 23.6% year-over-year, confirming that earnings are not just a result of cost-cutting.
- Profitability and Momentum: The profit margin is strong at 33.2% in the latest quarter, and it has been improving over the last three reported quarters (28.6%, 31.0%, 30.9%). This shows pricing power and operational efficiency.
- Surprise and Revision Trends: Management has beaten earnings estimates in 2 of the last 4 quarters and revenue estimates in 3 of the last 4 quarters. This pattern of positive surprises often leads to upward revisions, a key driver for stock price appreciation.
These fundamentals meet the core requirements of the HGM screen, suggesting the company is not just in a technical uptrend but is fundamentally firing on all cylinders.
ChartMill Technical Analysis Summary
Our full technical report for FSLR assigns it a Technical Rating of 9 out of 10, highlighting a consistent performance across short and long-term timeframes. However, the Setup Rating is a 3, indicating the stock is currently extended and not forming a tight consolidation pattern.
- Trend: The long-term trend is positive, while the short-term trend is neutral. The stock is technically strong but is currently in the middle of its recent trading range.
- Support & Resistance: Key support levels are identified at $249 (horizontal line) and $189 (horizontal line). Resistance can be found around $255 and a stronger zone between $271 and $277.
- Setups: The report notes that while the stock is technically excellent, it has been too volatile to offer a high-quality entry point right now. A period of consolidation would be ideal before starting a new position.
You can view the full detailed technical analysis chart for FSLR here.
While FSLR has a solid technical rating, the current setup is not ideal due to recent volatility. For investors looking for stocks that meet both the strict Trend Template criteria and show high fundamental growth, a wider list of candidates can be explored.
Click here to run the complete 'High Growth Momentum + Trend Template' screen and see all current results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading and investing in stocks involves risk, including the potential loss of principal. You should not make any investment decisions based solely on the content of this article.
Read full article here »
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First Solar Inc (NASDAQ:FSLR) Passes High Growth Momentum and Trend Template Screen
First Solar, Inc. (NASDAQ:FSLR) has been identified by a screen that combines two strong and complementary stock selection methods. The first is the Mark Minervini Trend Template, a set of strict technical criteria designed to identify stocks in a strong, established uptrend. The second is the ChartMill High Growth Momentum (HGM) rating, which evaluates the stock on fundamental growth factors. By requiring a stock to pass both a technical trend filter and a fundamental momentum filter, this approach aims to find companies that are not just rising in price, but are doing so on a foundation of accelerating earnings and sales.
Technical Foundation: Passing the Trend Template
The Trend Template is the technical starting point for the Minervini strategy, ensuring a stock is in a healthy "Stage 2" uptrend. This is critical because it prevents traders from buying into a downtrend or a stock that is just beginning to form a base. Instead, it focuses on market leaders that already have momentum. FSLR passes this screen with ease, meeting all the key criteria:
By satisfying these conditions, FSLR qualifies as technically fit for the next stage of analysis.
Fundamental Firepower: Why It Suits High Growth Investors
While the Trend Template handles the "when" to trade, the High Growth Momentum rating addresses the "why." This rating looks for the fundamental catalysts that often precede massive price runs. As Minervini teaches, "Big earnings attract big attention," and FSLR has the numbers to attract it.
These fundamentals meet the core requirements of the HGM screen, suggesting the company is not just in a technical uptrend but is fundamentally firing on all cylinders.
ChartMill Technical Analysis Summary
Our full technical report for FSLR assigns it a Technical Rating of 9 out of 10, highlighting a consistent performance across short and long-term timeframes. However, the Setup Rating is a 3, indicating the stock is currently extended and not forming a tight consolidation pattern.
You can view the full detailed technical analysis chart for FSLR here.
While FSLR has a solid technical rating, the current setup is not ideal due to recent volatility. For investors looking for stocks that meet both the strict Trend Template criteria and show high fundamental growth, a wider list of candidates can be explored.
Click here to run the complete 'High Growth Momentum + Trend Template' screen and see all current results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading and investing in stocks involves risk, including the potential loss of principal. You should not make any investment decisions based solely on the content of this article.
Read full article here »