Silicon Laboratories Inc. (NASDAQ:SLAB) has surfaced as a candidate worth a closer look after passing through a rigorous screening process that combines two proven frameworks: Mark Minervini’s Trend Template and the High Growth Momentum (HGM) rating system. This method first filters for technical strength using Minervini’s established set of rules—ensuring a stock is in a solid uptrend with tight price behavior—and then overlays a growth-focused fundamental check. The HGM rating, which scores stocks from 0 to 10 based on earnings acceleration, revenue trends, and valuation discipline, adds a second layer of validation. For growth investors, this dual approach aims to identify companies that not only look good on a chart but are also delivering real, accelerating business results.
How SLAB Measures Up to the Minervini Trend Template
The Minervini criteria are strict, and SLAB passes nearly all of them, which is a strong starting point for any trend-following strategy.
- Moving Average Alignment: The current price of $218.22 sits comfortably above its 50-day simple moving average (SMA) of $217.78, its 150-day SMA of $189.30, and its 200-day SMA of $174.58. This is the first key check—the stock must be trading above all three major averages.
- Trending Averages: Both the 150-day SMA and the 200-day SMA are rising, confirming that the long-term trend is firmly bullish. The 50-day SMA is also above both the 150-day and 200-day SMAs, signaling that recent momentum is accelerating, not slowing.
- 52-Week Range: SLAB is currently trading at $218.22, which is inside the upper 25% of its 52-week range (the high is $220.90). It is also more than 30% above its 52-week low of $115.51—in fact, it’s about 89% above that low. This satisfies two critical Minervini rules: being near a new high and having rallied substantially off the bottom.
- Relative Strength: The stock’s ChartMill Relative Strength (CRS) score is 80.17, meaning it outperforms over 80% of all stocks in the database. Minervini prefers scores of 70 or higher, ideally in the 80s or 90s, so this is right in the sweet spot.
The only minor note is that the short-term trend is currently neutral, but the long-term trend remains positive. In Minervini’s world, the long-term trend is given the benefit of the doubt, and a neutral short-term phase is often a consolidation period—exactly the kind of setup that can precede a breakout.
High Growth Momentum Fundamentals
While the technical setup is strong, the underlying business performance is what gives the trend credibility. The HGM rating of at least 4 is the minimum threshold, but SLAB’s fundamental numbers tell a more interesting story.
Earnings Acceleration is Clear:
- EPS Growth (TTM) vs. 1 Year Ago: +272.7%
- EPS Growth (Last Quarter vs. Same Quarter Last Year): +762.5%
- EPS Growth (Previous Quarter vs. Same Quarter Last Year): +609.1%
- EPS Growth (2 Quarters Ago vs. Same Quarter Last Year): +346.2%
- EPS Growth (3 Quarters Ago vs. Same Quarter Last Year): +119.6%
This pattern of consecutive, accelerating double- and triple-digit growth is exactly what Minervini looks for: “Big earnings attract big attention.” The stock has also beaten EPS estimates in each of the last four quarters, with an average beat of 5.45%.
Revenue Growth is Consistent but Not Overdone:
- Revenue Growth (TTM) vs. 1 Year Ago: +25.1%
- Last Quarter Revenue Growth vs. Same Quarter Last Year: +20.1%
Sales growth is steady and in the 20%+ range, which supports the earnings story without being so extreme that it looks unsustainable. Importantly, the company has moved from a negative profit margin just a few years ago to a positive trajectory, as evidenced by the dramatic swing from a -208% EPS growth rate in FY-1 to a +152.9% growth rate in the most recent full fiscal year.
Revision Activity is Positive:
- EPS Next Year Revision (3 months): +1.61% (analysts are raising forward expectations)
- The strong earnings surprise streak (4 out of 4 quarters) suggests the company is consistently under-promising and over-delivering.
What the Technical Report Says Now
The ChartMill technical analysis reinforces the idea that SLAB is in a constructive phase. The overall technical rating is 6 out of 10, which is solid but not perfect, largely due to the neutral short-term trend and the fact that 70% of stocks in the same industry (Semiconductors) are performing better. However, the Setup Quality score is 8 out of 10, which is high. This means the stock is forming a tight consolidation pattern with reduced volatility, often a precursor to a breakout.
The report details a clear support zone around $214.00 to $217.78, and a resistance zone at $218.27 to $220.35. The stock is currently pressing against that resistance, creating a binary event: a break above $220.36 would be a buy signal, with a stop loss placed below $216.50. The worst-case loss on this suggested setup is limited to about 1.75%.
You can review the full technical breakdown with charts and specific support/resistance levels on the ChartMill technical analysis page for SLAB.
Finding More Candidates Like SLAB
This stock was identified using a screen that combines Minervini’s Trend Template with the High Growth Momentum rating. The screen is designed to find other stocks that share similar characteristics: strong trends, accelerating earnings, and high relative strength.
If this approach fits your strategy, you can explore the current list of candidates and run the same filters yourself by visiting the High Growth Momentum + Trend Template Screen. This pre-filtered list is updated regularly and can save significant screening time.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own due diligence before making investment decisions.
Read full article here »
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Silicon Laboratories Inc. (NASDAQ:SLAB) Passes Minervini Trend Template and High Growth Momentum Screen
Silicon Laboratories Inc. (NASDAQ:SLAB) has surfaced as a candidate worth a closer look after passing through a rigorous screening process that combines two proven frameworks: Mark Minervini’s Trend Template and the High Growth Momentum (HGM) rating system. This method first filters for technical strength using Minervini’s established set of rules—ensuring a stock is in a solid uptrend with tight price behavior—and then overlays a growth-focused fundamental check. The HGM rating, which scores stocks from 0 to 10 based on earnings acceleration, revenue trends, and valuation discipline, adds a second layer of validation. For growth investors, this dual approach aims to identify companies that not only look good on a chart but are also delivering real, accelerating business results.
How SLAB Measures Up to the Minervini Trend Template
The Minervini criteria are strict, and SLAB passes nearly all of them, which is a strong starting point for any trend-following strategy.
The only minor note is that the short-term trend is currently neutral, but the long-term trend remains positive. In Minervini’s world, the long-term trend is given the benefit of the doubt, and a neutral short-term phase is often a consolidation period—exactly the kind of setup that can precede a breakout.
High Growth Momentum Fundamentals
While the technical setup is strong, the underlying business performance is what gives the trend credibility. The HGM rating of at least 4 is the minimum threshold, but SLAB’s fundamental numbers tell a more interesting story.
Earnings Acceleration is Clear:
This pattern of consecutive, accelerating double- and triple-digit growth is exactly what Minervini looks for: “Big earnings attract big attention.” The stock has also beaten EPS estimates in each of the last four quarters, with an average beat of 5.45%.
Revenue Growth is Consistent but Not Overdone:
Sales growth is steady and in the 20%+ range, which supports the earnings story without being so extreme that it looks unsustainable. Importantly, the company has moved from a negative profit margin just a few years ago to a positive trajectory, as evidenced by the dramatic swing from a -208% EPS growth rate in FY-1 to a +152.9% growth rate in the most recent full fiscal year.
Revision Activity is Positive:
What the Technical Report Says Now
The ChartMill technical analysis reinforces the idea that SLAB is in a constructive phase. The overall technical rating is 6 out of 10, which is solid but not perfect, largely due to the neutral short-term trend and the fact that 70% of stocks in the same industry (Semiconductors) are performing better. However, the Setup Quality score is 8 out of 10, which is high. This means the stock is forming a tight consolidation pattern with reduced volatility, often a precursor to a breakout.
The report details a clear support zone around $214.00 to $217.78, and a resistance zone at $218.27 to $220.35. The stock is currently pressing against that resistance, creating a binary event: a break above $220.36 would be a buy signal, with a stop loss placed below $216.50. The worst-case loss on this suggested setup is limited to about 1.75%.
You can review the full technical breakdown with charts and specific support/resistance levels on the ChartMill technical analysis page for SLAB.
Finding More Candidates Like SLAB
This stock was identified using a screen that combines Minervini’s Trend Template with the High Growth Momentum rating. The screen is designed to find other stocks that share similar characteristics: strong trends, accelerating earnings, and high relative strength.
If this approach fits your strategy, you can explore the current list of candidates and run the same filters yourself by visiting the High Growth Momentum + Trend Template Screen. This pre-filtered list is updated regularly and can save significant screening time.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own due diligence before making investment decisions.
Read full article here »