Both the broader market and individual stock selection have been delivered a clear message in recent weeks: strength attracts more strength. While the S&P 500’s long-term trend is currently neutral, its short-term momentum has turned positive, creating a fertile environment for stocks that are already leading. The methodology used to find such names combines two proven frameworks: Mark Minervini’s Trend Template, which ensures a stock is in a confirmed technical uptrend, and High Growth Momentum (HGM) analysis, which focuses on accelerating earnings, sales, and margin improvement. The stock that emerged from this screen is Kaiser Aluminum Corp (NASDAQ:KALU), a name that checks virtually every box for both disciplined trend-followers and growth-focused investors.
Technical Alignment with the Trend Template
Minervini’s Trend Template is built around eight specific conditions that define a stock in a strong stage-2 uptrend. Kaiser Aluminum passes on all counts, as confirmed by the latest data.
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Current price above the 150-day and 200-day moving averages: KALU trades at $179.11, well above the 150-day SMA of $137.86 and the 200-day SMA of $124.02. This confirms the long-term uptrend is intact.
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150-day and 200-day moving averages rising: The 200-day SMA has moved from $123.50 to $124.02, and the 150-day SMA is also trending higher. Both averages are sloping upward, signaling sustained demand.
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50-day moving average above both the 150-day and 200-day: The 50-day SMA sits at $173.33, well above both longer-term averages. This alignment is a classic bullish configuration.
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Current price at least 30% above the 52-week low: The 52-week low is $71.44. At $179.11, the current price is roughly 151% above that level, far exceeding the 30% threshold.
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Current price within 25% of the 52-week high: The 52-week high is $195.22. The current price is within 8.3% of that high, meeting the condition easily.
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Relative Strength (RS) above 70: KALU’s ChartMill Relative Strength rating is an outstanding 95.31, meaning it outperforms more than 95% of all stocks. This is exactly the kind of institutional-grade demand Minervini looks for.
These technical conditions ensure that the stock is not in a recovery or base-building phase but is actively participating in a confirmed uptrend with institutional accumulation. That is the foundation of the Minervini approach: buy strength, not weakness.
High Growth Momentum Fundamentals
While the Trend Template handles the technical vetting, the High Growth Momentum rating adds a fundamental layer. Minervini himself emphasizes that the biggest winners often show accelerating earnings and sales before their biggest price moves. KALU fits this profile exceptionally well.
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Earnings per Share (TTM): $8.34, with EPS growth over the past year of 184.6%. The last quarter’s year-over-year EPS growth was 159.7%, while the prior quarter came in at 363.6%. This acceleration is a hallmark of Minervini’s “big earnings attract big attention” principle.
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Quarterly earnings beats: KALU has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 63.6%. Beats of this magnitude often lead to upward earnings revisions, which in turn attract more institutional buying.
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Profit margins improving: The most recent quarterly profit margin of 5.65% is up from 3.04% in the prior quarter and 2.82% three quarters ago. This steady improvement in profitability is another key sign of operating leverage and pricing power.
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Revenue growth accelerating: Sales grew 42.4% year-over-year in the most recent quarter, up sharply from 21.4% in the prior quarter and 12.8% two quarters ago. This acceleration in revenue growth supports the earnings story and indicates strong end-market demand.
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Upward earnings revisions: Analysts have raised next-year EPS estimates by 36.4% over the past three months. Such aggressive upward revisions are a strong catalyst in the Minervini framework, often preceding further price gains.
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Free cash flow caution: Free cash flow per share has declined 85% over the past year. While this is a negative data point, it is not uncommon for quickly growing industrial companies that are reinvesting heavily in capacity. Investors should monitor this metric in upcoming quarters.
Together, these fundamental metrics paint a picture of a company that is not just growing, but accelerating across multiple dimensions—exactly the profile that high growth momentum strategies aim to capture.
ChartMill Technical Assessment Summary
The ChartMill technical report gives KALU a Technical Rating of 10 out of 10 and a Setup Rating of 7 out of 10. The technical rating reflects the stock’s strong long-term and short-term trends, its leading relative strength, and its position in the top tiers of both the overall market (outperforming 95% of stocks) and its industry (outperforming 93% of Metals & Mining peers). The setup rating indicates that a decent consolidation pattern is present, with reduced volatility and a clearly defined resistance zone near $190.34. The report suggests a potential buy-stop entry at $190.65 with a stop-loss at $172.50, limiting worst-case loss to about 9.5%. A recent Pocket Pivot signal—a price/volume accumulation pattern—adds further confirmation of institutional buying interest.
Read the full technical report for KALU here
Finding More Setups Like This
The combined screen that produced Kaiser Aluminum is designed to surface stocks that meet Minervini’s strict technical criteria while also demonstrating the accelerating growth profile that historically precedes big upside moves. The screen filters for the full Trend Template conditions (moving averages, proximity to highs, relative strength) alongside a High Growth Momentum rating of at least 4.
Click here to see the current results of this 'High Growth Momentum + Trend Template' screen and start building your own watchlist.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always perform your own due diligence and consider your own risk tolerance before making any trading decisions.
Read full article here »
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Kaiser Aluminum Corp (NASDAQ:KALU) Surges on High Growth Momentum and Trend Template Strength
Both the broader market and individual stock selection have been delivered a clear message in recent weeks: strength attracts more strength. While the S&P 500’s long-term trend is currently neutral, its short-term momentum has turned positive, creating a fertile environment for stocks that are already leading. The methodology used to find such names combines two proven frameworks: Mark Minervini’s Trend Template, which ensures a stock is in a confirmed technical uptrend, and High Growth Momentum (HGM) analysis, which focuses on accelerating earnings, sales, and margin improvement. The stock that emerged from this screen is Kaiser Aluminum Corp (NASDAQ:KALU), a name that checks virtually every box for both disciplined trend-followers and growth-focused investors.
Technical Alignment with the Trend Template
Minervini’s Trend Template is built around eight specific conditions that define a stock in a strong stage-2 uptrend. Kaiser Aluminum passes on all counts, as confirmed by the latest data.
Current price above the 150-day and 200-day moving averages: KALU trades at $179.11, well above the 150-day SMA of $137.86 and the 200-day SMA of $124.02. This confirms the long-term uptrend is intact.
150-day and 200-day moving averages rising: The 200-day SMA has moved from $123.50 to $124.02, and the 150-day SMA is also trending higher. Both averages are sloping upward, signaling sustained demand.
50-day moving average above both the 150-day and 200-day: The 50-day SMA sits at $173.33, well above both longer-term averages. This alignment is a classic bullish configuration.
Current price at least 30% above the 52-week low: The 52-week low is $71.44. At $179.11, the current price is roughly 151% above that level, far exceeding the 30% threshold.
Current price within 25% of the 52-week high: The 52-week high is $195.22. The current price is within 8.3% of that high, meeting the condition easily.
Relative Strength (RS) above 70: KALU’s ChartMill Relative Strength rating is an outstanding 95.31, meaning it outperforms more than 95% of all stocks. This is exactly the kind of institutional-grade demand Minervini looks for.
These technical conditions ensure that the stock is not in a recovery or base-building phase but is actively participating in a confirmed uptrend with institutional accumulation. That is the foundation of the Minervini approach: buy strength, not weakness.
High Growth Momentum Fundamentals
While the Trend Template handles the technical vetting, the High Growth Momentum rating adds a fundamental layer. Minervini himself emphasizes that the biggest winners often show accelerating earnings and sales before their biggest price moves. KALU fits this profile exceptionally well.
Earnings per Share (TTM): $8.34, with EPS growth over the past year of 184.6%. The last quarter’s year-over-year EPS growth was 159.7%, while the prior quarter came in at 363.6%. This acceleration is a hallmark of Minervini’s “big earnings attract big attention” principle.
Quarterly earnings beats: KALU has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 63.6%. Beats of this magnitude often lead to upward earnings revisions, which in turn attract more institutional buying.
Profit margins improving: The most recent quarterly profit margin of 5.65% is up from 3.04% in the prior quarter and 2.82% three quarters ago. This steady improvement in profitability is another key sign of operating leverage and pricing power.
Revenue growth accelerating: Sales grew 42.4% year-over-year in the most recent quarter, up sharply from 21.4% in the prior quarter and 12.8% two quarters ago. This acceleration in revenue growth supports the earnings story and indicates strong end-market demand.
Upward earnings revisions: Analysts have raised next-year EPS estimates by 36.4% over the past three months. Such aggressive upward revisions are a strong catalyst in the Minervini framework, often preceding further price gains.
Free cash flow caution: Free cash flow per share has declined 85% over the past year. While this is a negative data point, it is not uncommon for quickly growing industrial companies that are reinvesting heavily in capacity. Investors should monitor this metric in upcoming quarters.
Together, these fundamental metrics paint a picture of a company that is not just growing, but accelerating across multiple dimensions—exactly the profile that high growth momentum strategies aim to capture.
ChartMill Technical Assessment Summary
The ChartMill technical report gives KALU a Technical Rating of 10 out of 10 and a Setup Rating of 7 out of 10. The technical rating reflects the stock’s strong long-term and short-term trends, its leading relative strength, and its position in the top tiers of both the overall market (outperforming 95% of stocks) and its industry (outperforming 93% of Metals & Mining peers). The setup rating indicates that a decent consolidation pattern is present, with reduced volatility and a clearly defined resistance zone near $190.34. The report suggests a potential buy-stop entry at $190.65 with a stop-loss at $172.50, limiting worst-case loss to about 9.5%. A recent Pocket Pivot signal—a price/volume accumulation pattern—adds further confirmation of institutional buying interest.
Read the full technical report for KALU here
Finding More Setups Like This
The combined screen that produced Kaiser Aluminum is designed to surface stocks that meet Minervini’s strict technical criteria while also demonstrating the accelerating growth profile that historically precedes big upside moves. The screen filters for the full Trend Template conditions (moving averages, proximity to highs, relative strength) alongside a High Growth Momentum rating of at least 4.
Click here to see the current results of this 'High Growth Momentum + Trend Template' screen and start building your own watchlist.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always perform your own due diligence and consider your own risk tolerance before making any trading decisions.
Read full article here »