The Mark Minervini approach to stock selection blends strict technical trend requirements with a focus on companies showing accelerating business fundamentals. The theory is straightforward — the most explosive stock market winners typically emerge from a strong upward trend (what Minervini calls Stage 2) and are backed by improving earnings and sales growth. By screening for both the technical Trend Template and a solid High Growth Momentum rating, investors can narrow the field to stocks that exhibit powerful price action and the fundamental catalysts needed to sustain it. We take a closer look at one such name that passed this combined screen: Equity Bancshares Inc - Cl A (NYSE:EQBK).
Meeting the Trend Template
The first hurdle for any Minervini candidate is the Trend Template, a set of eight technical conditions designed to ensure a stock is in a healthy, sustainable uptrend. EQBK passes each of these checks with clear data points.
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Moving Average Alignment and Trend: The current price of $49.20 sits well above its rising 50-day SMA ($46.94), 150-day SMA ($46.05), and 200-day SMA ($44.93). More importantly, the 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. The 200-day SMA is also trending upward (previous value: $44.89, current: $44.93), confirming a sustained long-term uptrend. This "perfect stack" of moving averages is a signature trait of Minervini’s approach, as it indicates buyers are firmly in control across multiple timeframes.
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52-Week High and Low Proximity: The stock’s current price is 36.5% above its 52-week low of $36.04, clearing the 30% minimum threshold with room to spare. It is also trading within 4.4% of its 52-week high of $51.48. Minervini’s method favors stocks near their highs because they are often breaking out to new levels with little overhead resistance, a sign of leadership rather than a rebound from weakness.
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Relative Strength: With a ChartMill Relative Strength (CRS) score of 75.62, EQBK outperforms roughly three-quarters of all stocks in the market. This high relative strength confirms that the stock is attracting institutional demand, a critical element in the Minervini strategy where the strongest stocks tend to lead during bull markets.
The High Growth Momentum Angle
While the technical setup is impressive, Minervini’s system is not purely chart-driven. The second part of the screen targets stocks with a High Growth Momentum rating of at least 4, which ensures the company’s fundamentals match the technical strength.
EQBK shows a mixed but compelling fundamental picture that fits the high-growth profile. The most telling metric is the sharp turnaround in quarterly earnings growth. After a difficult period where EPS growth was deeply negative three quarters ago (???221%), the last reported quarter saw a dramatic inflection to +35.1% year-over-year. This kind of acceleration is a core component of Minervini’s SEPA (Specific Entry Point Analysis) framework, which looks for improving earnings as a catalyst for future price appreciation. Sales growth confirms the trend, with the most recent quarter showing a 40.3% year-over-year increase. The company’s profit margin, while fluctuating, remains solid at over 20% in the last quarter.
This combination of a recent fundamental turnaround and strong technical alignment is precisely what the Minervini strategy aims to capture. The stock is not just going up; it is doing so on the back of reaccelerating business performance.
Technical Analysis Summary
The full technical report for EQBK reinforces an exceptionally strong picture. The stock receives a near-perfect Technical Rating of 9 out of 10, driven by consistently positive short and long-term trends. The Setup Quality Rating is 8 out of 10, indicating a constructive consolidation pattern. Prices have been trading in a range between $45.96 and $51.48 recently and are currently in the middle of that zone, suggesting a potential entry opportunity. A recent Pocket Pivot signal was also detected, which is a positive volume-based accumulation pattern often seen before strong moves. The report notes a support zone near $49.08 and a resistance zone between $49.62 and $50.21, with an automatically generated trade setup suggesting a buy stop above the resistance.
To see more stocks that pass this combination of the Minervini Trend Template and High Growth Momentum filters, you can run the full screen here and review the latest candidates.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any trading decisions.
Read full article here »
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Equity Bancshares (NYSE:EQBK) Shows High Growth Momentum with Minervini Breakout Setup
The Mark Minervini approach to stock selection blends strict technical trend requirements with a focus on companies showing accelerating business fundamentals. The theory is straightforward — the most explosive stock market winners typically emerge from a strong upward trend (what Minervini calls Stage 2) and are backed by improving earnings and sales growth. By screening for both the technical Trend Template and a solid High Growth Momentum rating, investors can narrow the field to stocks that exhibit powerful price action and the fundamental catalysts needed to sustain it. We take a closer look at one such name that passed this combined screen: Equity Bancshares Inc - Cl A (NYSE:EQBK).
Meeting the Trend Template
The first hurdle for any Minervini candidate is the Trend Template, a set of eight technical conditions designed to ensure a stock is in a healthy, sustainable uptrend. EQBK passes each of these checks with clear data points.
Moving Average Alignment and Trend: The current price of $49.20 sits well above its rising 50-day SMA ($46.94), 150-day SMA ($46.05), and 200-day SMA ($44.93). More importantly, the 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. The 200-day SMA is also trending upward (previous value: $44.89, current: $44.93), confirming a sustained long-term uptrend. This "perfect stack" of moving averages is a signature trait of Minervini’s approach, as it indicates buyers are firmly in control across multiple timeframes.
52-Week High and Low Proximity: The stock’s current price is 36.5% above its 52-week low of $36.04, clearing the 30% minimum threshold with room to spare. It is also trading within 4.4% of its 52-week high of $51.48. Minervini’s method favors stocks near their highs because they are often breaking out to new levels with little overhead resistance, a sign of leadership rather than a rebound from weakness.
Relative Strength: With a ChartMill Relative Strength (CRS) score of 75.62, EQBK outperforms roughly three-quarters of all stocks in the market. This high relative strength confirms that the stock is attracting institutional demand, a critical element in the Minervini strategy where the strongest stocks tend to lead during bull markets.
The High Growth Momentum Angle
While the technical setup is impressive, Minervini’s system is not purely chart-driven. The second part of the screen targets stocks with a High Growth Momentum rating of at least 4, which ensures the company’s fundamentals match the technical strength.
EQBK shows a mixed but compelling fundamental picture that fits the high-growth profile. The most telling metric is the sharp turnaround in quarterly earnings growth. After a difficult period where EPS growth was deeply negative three quarters ago (???221%), the last reported quarter saw a dramatic inflection to +35.1% year-over-year. This kind of acceleration is a core component of Minervini’s SEPA (Specific Entry Point Analysis) framework, which looks for improving earnings as a catalyst for future price appreciation. Sales growth confirms the trend, with the most recent quarter showing a 40.3% year-over-year increase. The company’s profit margin, while fluctuating, remains solid at over 20% in the last quarter.
This combination of a recent fundamental turnaround and strong technical alignment is precisely what the Minervini strategy aims to capture. The stock is not just going up; it is doing so on the back of reaccelerating business performance.
Technical Analysis Summary
The full technical report for EQBK reinforces an exceptionally strong picture. The stock receives a near-perfect Technical Rating of 9 out of 10, driven by consistently positive short and long-term trends. The Setup Quality Rating is 8 out of 10, indicating a constructive consolidation pattern. Prices have been trading in a range between $45.96 and $51.48 recently and are currently in the middle of that zone, suggesting a potential entry opportunity. A recent Pocket Pivot signal was also detected, which is a positive volume-based accumulation pattern often seen before strong moves. The report notes a support zone near $49.08 and a resistance zone between $49.62 and $50.21, with an automatically generated trade setup suggesting a buy stop above the resistance.
To see more stocks that pass this combination of the Minervini Trend Template and High Growth Momentum filters, you can run the full screen here and review the latest candidates.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any trading decisions.
Read full article here »