Vicor Corp. (NASDAQ:VICR) is a company that designs, develops, and manufactures modular power components, a critical piece of infrastructure for everything from data centers to electric vehicles. The stock recently surfaced on a screen that combines two strong frameworks: the Mark Minervini Trend Template and the ChartMill High Growth Momentum (HGM) rating. The Trend Template provides strict technical criteria to ensure a stock is in a strong, sustainable uptrend, while the HGM rating examines the fundamental health of a company, focusing on earnings and revenue acceleration. This dual-filter approach helps investors avoid the trap of buying a stock that looks strong on a chart but has deteriorating business fundamentals, or one with fantastic earnings that is being beaten down by sellers. Vicor passes both checks, making it a candidate worthy of a closer look.
Meeting the Minervini Trend Template
The core of the Minervini strategy is to only trade stocks that are already in a confirmed Stage 2 uptrend. The goal is to ride momentum, not to catch a falling knife. Vicor checks every box on the Trend Template checklist.
-
Moving Average Alignment: The trend is confirmed by the position of key moving averages. The current price of $326.93 sits well above the 50-day SMA ($288.65), the 150-day SMA ($193.99), and the 200-day SMA ($162.40). Critically, the 50-day is above both the 150-day and 200-day, and the 150-day is above the 200-day. This "stacked" alignment is a textbook sign of a strong, healthy uptrend.
-
52-Week High and Low Proximity: Minervini's rules demand a stock be at least 30% above its 52-week low and within 25% of its 52-week high. At $326.93, Vicor is an astonishing 683% above its 52-week low of $41.76, and only about 11.5% from its 52-week high of $369.40. This is exceptional performance.
-
Relative Strength: The stock’s Relative Strength (RS) rating is 99.4. This means Vicor has outperformed 99.4% of all other stocks in the market over the past 12 months. This is precisely the kind of leading, high-demand stock that the Minervini method seeks out.
By meeting all these technical criteria, Vicor demonstrates that institutional demand is strong and the path of least resistance is higher. This provides a solid foundation for any high-growth thesis.
[stock-image]
The High Growth Engine
While the Trend Template confirms the trend, the High Growth Momentum rating confirms the cause. A stock cannot sustain a 600%+ move over a year without a massive improvement in the underlying business. The HGM rating (which stands at a strong level to pass the screen) looks for exactly these fundamental catalysts.
Vicor’s fundamentals tell a story of a company that has undergone a dramatic turnaround and acceleration.
-
Explosive Earnings Growth: The most recent quarter (EPS Q2Q) saw earnings growth of 633% compared to the same quarter last year. This is not a one-off fluke; the trend has been accelerating. The previous quarter grew 339%, and the quarter before that grew 142%.
-
Consistent Sales Growth: Revenue growth is also accelerating. The latest quarter showed year-over-year sales growth of 20.2%, up from 11.5% in the prior quarter. This combination of accelerating earnings and revenue is a strong signal that the company has pricing power and is executing well.
-
Beating Expectations: Vicor has beaten both earnings and revenue estimates in three of the last four quarters. The average earnings beat has been a massive 82.9%, showing that the company is consistently under-promising and over-delivering.
-
Improving Profitability: The profit margin has expanded dramatically. In the most recent full fiscal year, the margin was 29%, a stark contrast to just 1.7% in the prior year. This transition from low to high profitability is a hallmark of a company that has found a successful product-market fit and is now scaling efficiently.
Technical Health Summary
Our detailed technical analysis of Vicor confirms a strong setup but also provides context on the immediate risk.
-
Technical Rating (9/10): The stock's overall technical health is excellent, driven by a very strong long-term trend. The short-term trend is currently neutral, which is typical for a stock consolidating near its highs.
-
Setup Rating (6/10): The current pattern is decent. The stock is in a consolidation phase, which is a good sign for building a new base, but volatility has not compressed enough to create the "tight" ideal entry point Minervini prefers. The suggested trade setup would be aggressive.
The current support zones are at $322.27-$326.92 (a major area formed by multiple trend lines) and then at $303.25. The suggested entry point is based on a breakout above the 10-day moving average, with a tight stop just below the main support zone.
This combination of a perfect technical trend and strong, accelerating fundamental momentum puts Vicor in a very exclusive category. You can find more stocks that fit this specific high-growth momentum screen by running the full filter here: High Growth Momentum + Trend Template Screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Any trading or investment decisions you make are your own responsibility. Please conduct your own due diligence.
Read full article here »
View the Zacks #1 Rank List
Vicor Corp (NASDAQ:VICR): A High-Growth Momentum Play Confirmed by the Minervini Trend Template
Vicor Corp. (NASDAQ:VICR) is a company that designs, develops, and manufactures modular power components, a critical piece of infrastructure for everything from data centers to electric vehicles. The stock recently surfaced on a screen that combines two strong frameworks: the Mark Minervini Trend Template and the ChartMill High Growth Momentum (HGM) rating. The Trend Template provides strict technical criteria to ensure a stock is in a strong, sustainable uptrend, while the HGM rating examines the fundamental health of a company, focusing on earnings and revenue acceleration. This dual-filter approach helps investors avoid the trap of buying a stock that looks strong on a chart but has deteriorating business fundamentals, or one with fantastic earnings that is being beaten down by sellers. Vicor passes both checks, making it a candidate worthy of a closer look.
Meeting the Minervini Trend Template
The core of the Minervini strategy is to only trade stocks that are already in a confirmed Stage 2 uptrend. The goal is to ride momentum, not to catch a falling knife. Vicor checks every box on the Trend Template checklist.
Moving Average Alignment: The trend is confirmed by the position of key moving averages. The current price of $326.93 sits well above the 50-day SMA ($288.65), the 150-day SMA ($193.99), and the 200-day SMA ($162.40). Critically, the 50-day is above both the 150-day and 200-day, and the 150-day is above the 200-day. This "stacked" alignment is a textbook sign of a strong, healthy uptrend.
52-Week High and Low Proximity: Minervini's rules demand a stock be at least 30% above its 52-week low and within 25% of its 52-week high. At $326.93, Vicor is an astonishing 683% above its 52-week low of $41.76, and only about 11.5% from its 52-week high of $369.40. This is exceptional performance.
Relative Strength: The stock’s Relative Strength (RS) rating is 99.4. This means Vicor has outperformed 99.4% of all other stocks in the market over the past 12 months. This is precisely the kind of leading, high-demand stock that the Minervini method seeks out.
By meeting all these technical criteria, Vicor demonstrates that institutional demand is strong and the path of least resistance is higher. This provides a solid foundation for any high-growth thesis.
[stock-image]
The High Growth Engine
While the Trend Template confirms the trend, the High Growth Momentum rating confirms the cause. A stock cannot sustain a 600%+ move over a year without a massive improvement in the underlying business. The HGM rating (which stands at a strong level to pass the screen) looks for exactly these fundamental catalysts.
Vicor’s fundamentals tell a story of a company that has undergone a dramatic turnaround and acceleration.
Explosive Earnings Growth: The most recent quarter (EPS Q2Q) saw earnings growth of 633% compared to the same quarter last year. This is not a one-off fluke; the trend has been accelerating. The previous quarter grew 339%, and the quarter before that grew 142%.
Consistent Sales Growth: Revenue growth is also accelerating. The latest quarter showed year-over-year sales growth of 20.2%, up from 11.5% in the prior quarter. This combination of accelerating earnings and revenue is a strong signal that the company has pricing power and is executing well.
Beating Expectations: Vicor has beaten both earnings and revenue estimates in three of the last four quarters. The average earnings beat has been a massive 82.9%, showing that the company is consistently under-promising and over-delivering.
Improving Profitability: The profit margin has expanded dramatically. In the most recent full fiscal year, the margin was 29%, a stark contrast to just 1.7% in the prior year. This transition from low to high profitability is a hallmark of a company that has found a successful product-market fit and is now scaling efficiently.
Technical Health Summary
Our detailed technical analysis of Vicor confirms a strong setup but also provides context on the immediate risk.
Technical Rating (9/10): The stock's overall technical health is excellent, driven by a very strong long-term trend. The short-term trend is currently neutral, which is typical for a stock consolidating near its highs.
Setup Rating (6/10): The current pattern is decent. The stock is in a consolidation phase, which is a good sign for building a new base, but volatility has not compressed enough to create the "tight" ideal entry point Minervini prefers. The suggested trade setup would be aggressive.
The current support zones are at $322.27-$326.92 (a major area formed by multiple trend lines) and then at $303.25. The suggested entry point is based on a breakout above the 10-day moving average, with a tight stop just below the main support zone.
This combination of a perfect technical trend and strong, accelerating fundamental momentum puts Vicor in a very exclusive category. You can find more stocks that fit this specific high-growth momentum screen by running the full filter here: High Growth Momentum + Trend Template Screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Any trading or investment decisions you make are your own responsibility. Please conduct your own due diligence.
Read full article here »