The screen used to identify Rush Street Interactive Inc (NYSE:RSI) combines two strong, complementary approaches: the classic Mark Minervini Trend Template and a High Growth Momentum (HGM) filter. The Trend Template ensures a stock is in a solid, sustainable uptrend with sound technical foundations, while the HGM rating (set to a minimum of 4 out of 10 here) focuses on companies showing accelerating earnings and sales growth, often the sign of market leaders. This dual-filter approach aims to find stocks that are not only technically sound but also fundamentally accelerating, a combination that historically has produced some of the best risk-adjusted returns in growth investing.
Technical Strength Meets the Trend Template
The technical picture for RSI is exceptionally clean. It meets every major rule of the Minervini Trend Template, which is designed to identify stocks in a confirmed Stage 2 uptrend.
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Moving Average Alignment: The current price of $31.32 is well above the rising 50-day SMA ($27.23), which itself is above the rising 150-day SMA ($22.00) and the rising 200-day SMA ($21.29). This perfect alignment confirms strong intermediate and long-term momentum. The 200-day SMA is also ascending (from $21.24 to $21.29), signaling that the long-term trend is healthy.
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52-Week Range: The stock is trading near its 52-week high of $31.85, which is only 1.7% away. It is also 118% above its 52-week low of $14.38. This satisfies the Trend Template's requirement for stocks to be within 25% of their high and at least 30% above their low, indicating strong relative strength.
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Relative Strength: With a ChartMill Relative Strength (CRS) of 94.31, RSI is outperforming 94% of all stocks in the market. This is a key Minervini signal that institutional demand is present. The stock is leading the market, not following it—a critical trait for a potential leader.
High Growth Momentum: The Fundamental Backbone
The Minervini strategy is not just about price; it requires fundamental acceleration to sustain a strong uptrend. The provided HGM data strongly supports this.
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Earnings Acceleration: Earnings per share (EPS) growth is accelerating on multiple fronts. The trailing twelve-month (TTM) EPS growth is 68%, while the most recent quarter saw a 55.6% year-over-year increase. Looking back, the growth has been exceptional: Q-3 saw 175% growth, followed by 80% in Q-2, demonstrating consistent acceleration.
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Sales Growth and Beats: Revenue growth is also solid, with TTM growth of 28.2% and the most recent quarter showing a 41.1% year-over-year surge. Critically, the company has beaten revenue estimates in all of the last four quarters, with an average beat of 6.2%. This consistency in exceeding expectations is a strong catalyst that the Minervini method specifically looks for.
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Profitability and Revisions: Profit margins are improving. The most recent quarter's profit margin of 2.45% is up from 1.61% in the prior quarter, signaling better operational efficiency. Analysts are also revising their expectations upward—next year’s EPS estimates have been raised by 10.1% in the last three months, adding further fundamental support.
ChartMill Technical Assessment
The proprietary ChartMill technical report for RSI provides a high-level confirmation of the analysis above. The stock scores a perfect 10 on the technical rating, reflecting its strong and consistent uptrend across all timeframes. The setup quality rating is a solid 7, indicating that while the stock is near its highs, it is consolidating in a tight range, offering a potential entry point with a defined support level. The report also flags a positive "Pocket Pivot" signal, which is a volume-based accumulation pattern that often precedes further upside.
The full technical analysis report can be reviewed here.
Finding More Candidates
This screen is designed to be a starting point, not an exhaustive list. Market conditions change, and new setups appear daily. For a continuously updated list of stocks that meet these rigorous technical and fundamental criteria, you can run the screen yourself.
Click here to view the live "High Growth Momentum + Trend Template" screener results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading stocks involves risk, and past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making any investment decisions.
Read full article here »
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Rush Street Interactive Inc (NYSE:RSI) Shows Perfect Technical and Fundamental Setup for Growth Investors
The screen used to identify Rush Street Interactive Inc (NYSE:RSI) combines two strong, complementary approaches: the classic Mark Minervini Trend Template and a High Growth Momentum (HGM) filter. The Trend Template ensures a stock is in a solid, sustainable uptrend with sound technical foundations, while the HGM rating (set to a minimum of 4 out of 10 here) focuses on companies showing accelerating earnings and sales growth, often the sign of market leaders. This dual-filter approach aims to find stocks that are not only technically sound but also fundamentally accelerating, a combination that historically has produced some of the best risk-adjusted returns in growth investing.
Technical Strength Meets the Trend Template
The technical picture for RSI is exceptionally clean. It meets every major rule of the Minervini Trend Template, which is designed to identify stocks in a confirmed Stage 2 uptrend.
Moving Average Alignment: The current price of $31.32 is well above the rising 50-day SMA ($27.23), which itself is above the rising 150-day SMA ($22.00) and the rising 200-day SMA ($21.29). This perfect alignment confirms strong intermediate and long-term momentum. The 200-day SMA is also ascending (from $21.24 to $21.29), signaling that the long-term trend is healthy.
52-Week Range: The stock is trading near its 52-week high of $31.85, which is only 1.7% away. It is also 118% above its 52-week low of $14.38. This satisfies the Trend Template's requirement for stocks to be within 25% of their high and at least 30% above their low, indicating strong relative strength.
Relative Strength: With a ChartMill Relative Strength (CRS) of 94.31, RSI is outperforming 94% of all stocks in the market. This is a key Minervini signal that institutional demand is present. The stock is leading the market, not following it—a critical trait for a potential leader.
High Growth Momentum: The Fundamental Backbone
The Minervini strategy is not just about price; it requires fundamental acceleration to sustain a strong uptrend. The provided HGM data strongly supports this.
Earnings Acceleration: Earnings per share (EPS) growth is accelerating on multiple fronts. The trailing twelve-month (TTM) EPS growth is 68%, while the most recent quarter saw a 55.6% year-over-year increase. Looking back, the growth has been exceptional: Q-3 saw 175% growth, followed by 80% in Q-2, demonstrating consistent acceleration.
Sales Growth and Beats: Revenue growth is also solid, with TTM growth of 28.2% and the most recent quarter showing a 41.1% year-over-year surge. Critically, the company has beaten revenue estimates in all of the last four quarters, with an average beat of 6.2%. This consistency in exceeding expectations is a strong catalyst that the Minervini method specifically looks for.
Profitability and Revisions: Profit margins are improving. The most recent quarter's profit margin of 2.45% is up from 1.61% in the prior quarter, signaling better operational efficiency. Analysts are also revising their expectations upward—next year’s EPS estimates have been raised by 10.1% in the last three months, adding further fundamental support.
ChartMill Technical Assessment
The proprietary ChartMill technical report for RSI provides a high-level confirmation of the analysis above. The stock scores a perfect 10 on the technical rating, reflecting its strong and consistent uptrend across all timeframes. The setup quality rating is a solid 7, indicating that while the stock is near its highs, it is consolidating in a tight range, offering a potential entry point with a defined support level. The report also flags a positive "Pocket Pivot" signal, which is a volume-based accumulation pattern that often precedes further upside.
The full technical analysis report can be reviewed here.
Finding More Candidates
This screen is designed to be a starting point, not an exhaustive list. Market conditions change, and new setups appear daily. For a continuously updated list of stocks that meet these rigorous technical and fundamental criteria, you can run the screen yourself.
Click here to view the live "High Growth Momentum + Trend Template" screener results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading stocks involves risk, and past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making any investment decisions.
Read full article here »