The Mark Minervini strategy is built on two pillars: a stock must be in a strong technical uptrend, and it must be backed by accelerating earnings and sales growth. The first part is captured by the Trend Template, a set of strict rules that confirm a stock is in a Stage 2 uptrend. The second part relies on fundamental strength, particularly rising profits and revenues. The screen that flagged this candidate combines both layers, ensuring that only stocks with a healthy technical structure and a high-growth momentum rating of at least 4 are considered.
ROSS STORES INC (NASDAQ:ROST) passes the Trend Template cleanly on every required metric. The current price of $235.78 trades well above its rising 200-day SMA ($198.31) and its 150-day SMA ($210.19). The 50-day SMA ($224.31) sits above both longer-term averages, confirming the bullish alignment Minervini demands. The stock is 75% above its 52-week low of $134.37, far exceeding the 30% minimum, and is trading within 3% of its 52-week high of $242.81. The ChartMill relative strength reading of 91.62 means ROST outperforms more than 91% of all stocks, a score that puts it squarely in the preferred range above 80.
On the fundamental side, the high-growth case is supported by several layers of evidence. Earnings per share (TTM) stand at $7.16, with a trailing twelve-month growth rate of 13.1%. More importantly, the most recent quarter delivered a 37.4% year-over-year EPS gain, a sharp acceleration from the 11.7% and 6.7% recorded in the two prior quarters. Revenue growth followed a similar pattern, with the latest quarter showing a 20.6% year-over-year increase, up from 12.2% and 10.4% in the preceding quarters. The company has beaten earnings estimates in three of the last four quarters, with an average beat of 6.8%. Analysts have also revised next year’s EPS estimates upward by 5.3% over the last three months, suggesting growing confidence in the trajectory. Profit margins have been expanding, with the latest quarter posting 10.8%, up from 9.7% in the prior quarter and 9.1% two quarters ago.
These conditions align directly with what the Minervini strategy looks for. The accelerating quarterly EPS and revenue growth, combined with positive earnings surprises and upward estimate revisions, are the fundamental catalysts that often precede major price moves. The stock’s technical strength confirms it is already in the accumulation phase that institutions favor.
High-Level Technical Assessment
The ChartMill technical report assigns ROST a perfect technical rating of 10 out of 10. Both the short-term and long-term trends are rated as positive, and the stock outperforms 90% of its peers in the Specialty Retail industry. It is trading near its 52-week high while the broader S&P 500 is not, a sign of relative market leadership. The average daily volume of over 3.3 million shares provides ample liquidity.
The setup rating, however, is only 2 out of 10. The report notes that prices have extended to the upside recently, and a pullback or consolidation would likely be needed before a low-risk entry point appears. Volume has also been declining in recent days, which is worth monitoring. The key support levels identified are at $234.81 (near-term), a zone from $219.97 to $225.45 (stronger), and a deeper zone from $206.28 to $213.64.
This combination of a flawless technical rating with a low setup score is a classic scenario in the Minervini framework. The stock is a proven leader, but chasing it during an extended move increases the risk of entry at an unfavorable point. Waiting for a natural pause or pullback toward support aligns with Minervini’s emphasis on precise entry.
For those looking to identify similar candidates that combine a strong uptrend with accelerating fundamentals, you can run the full screen yourself by clicking here to explore more results.
Disclaimer: This is not investment advice. The content provided is for informational and educational purposes only. Always conduct your own research before making any trading decisions.
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Ross Stores Inc (NASDAQ:ROST) Shows Strong Uptrend and Accelerating Growth in a High Quality Stock Setup
The Mark Minervini strategy is built on two pillars: a stock must be in a strong technical uptrend, and it must be backed by accelerating earnings and sales growth. The first part is captured by the Trend Template, a set of strict rules that confirm a stock is in a Stage 2 uptrend. The second part relies on fundamental strength, particularly rising profits and revenues. The screen that flagged this candidate combines both layers, ensuring that only stocks with a healthy technical structure and a high-growth momentum rating of at least 4 are considered.
ROSS STORES INC (NASDAQ:ROST) passes the Trend Template cleanly on every required metric. The current price of $235.78 trades well above its rising 200-day SMA ($198.31) and its 150-day SMA ($210.19). The 50-day SMA ($224.31) sits above both longer-term averages, confirming the bullish alignment Minervini demands. The stock is 75% above its 52-week low of $134.37, far exceeding the 30% minimum, and is trading within 3% of its 52-week high of $242.81. The ChartMill relative strength reading of 91.62 means ROST outperforms more than 91% of all stocks, a score that puts it squarely in the preferred range above 80.
On the fundamental side, the high-growth case is supported by several layers of evidence. Earnings per share (TTM) stand at $7.16, with a trailing twelve-month growth rate of 13.1%. More importantly, the most recent quarter delivered a 37.4% year-over-year EPS gain, a sharp acceleration from the 11.7% and 6.7% recorded in the two prior quarters. Revenue growth followed a similar pattern, with the latest quarter showing a 20.6% year-over-year increase, up from 12.2% and 10.4% in the preceding quarters. The company has beaten earnings estimates in three of the last four quarters, with an average beat of 6.8%. Analysts have also revised next year’s EPS estimates upward by 5.3% over the last three months, suggesting growing confidence in the trajectory. Profit margins have been expanding, with the latest quarter posting 10.8%, up from 9.7% in the prior quarter and 9.1% two quarters ago.
These conditions align directly with what the Minervini strategy looks for. The accelerating quarterly EPS and revenue growth, combined with positive earnings surprises and upward estimate revisions, are the fundamental catalysts that often precede major price moves. The stock’s technical strength confirms it is already in the accumulation phase that institutions favor.
High-Level Technical Assessment
The ChartMill technical report assigns ROST a perfect technical rating of 10 out of 10. Both the short-term and long-term trends are rated as positive, and the stock outperforms 90% of its peers in the Specialty Retail industry. It is trading near its 52-week high while the broader S&P 500 is not, a sign of relative market leadership. The average daily volume of over 3.3 million shares provides ample liquidity.
The setup rating, however, is only 2 out of 10. The report notes that prices have extended to the upside recently, and a pullback or consolidation would likely be needed before a low-risk entry point appears. Volume has also been declining in recent days, which is worth monitoring. The key support levels identified are at $234.81 (near-term), a zone from $219.97 to $225.45 (stronger), and a deeper zone from $206.28 to $213.64.
This combination of a flawless technical rating with a low setup score is a classic scenario in the Minervini framework. The stock is a proven leader, but chasing it during an extended move increases the risk of entry at an unfavorable point. Waiting for a natural pause or pullback toward support aligns with Minervini’s emphasis on precise entry.
For those looking to identify similar candidates that combine a strong uptrend with accelerating fundamentals, you can run the full screen yourself by clicking here to explore more results.
Disclaimer: This is not investment advice. The content provided is for informational and educational purposes only. Always conduct your own research before making any trading decisions.
Read full article here »