The Mark Minervini trading approach is built on a simple premise: the biggest stock market winners are already in strong uptrends before they make their largest moves, and those technical trends are typically backed by accelerating earnings growth. The scan that produced this candidate combines Minervini's Trend Template, which filters for price and moving-average alignment, with a High Growth Momentum check, which ensures that a company's earnings and sales are expanding at a pace suited to growth investors. One stock that fits this combined methodology is ARROW ELECTRONICS INC (NYSE:ARW).
Trend Template Compliance
Minervini's Trend Template is designed to isolate stocks that are in a confirmed Stage 2 uptrend, with price action, moving averages, and relative strength all pointing in the same direction. Arrow Electronics passes those tests cleanly:
- Current price of $216.57 is above the 50-day SMA of $215.48, the 150-day SMA of $172.41, and the 200-day SMA of $157.47.
- Both the 50-day and 200-day moving averages are rising, confirming momentum across multiple timeframes.
- The stock sits roughly 113% above its 52-week low of $101.79, comfortably exceeding the 30% minimum required by the template.
- At $216.57, the shares are less than 9% below the 52-week high of $237.33, so they are within Minervini's 25% proximity rule.
- Relative strength stands at 94.13, meaning the stock is outperforming roughly 94% of the market.
These are not arbitrary boxes to tick. Minervini's rules are designed to keep traders focused on stocks that already have institutional support and are near their highs, rather than trying to catch falling knives. A stock that is above rising moving averages and close to its 52-week high is showing persistent demand, which is exactly the environment where momentum can continue.
High Growth Momentum Qualification
The technical picture is strong, but the strategy also demands fundamental confirmation. Arrow Electronics delivers on that side as well, with earnings and revenue trends that have accelerated sharply in recent quarters.
Key high-growth evidence:
- EPS growth over the trailing twelve months: +49.9%
- EPS growth in the most recent quarter versus the same quarter last year: +190.0%
- Revenue growth over the trailing twelve months: +20.5%
- Sales growth in the latest quarter versus the same quarter last year: +39.0%
- EPS estimate beats: 4 out of the last 4 quarters, with an average beat of 30.6%
- Revenue estimate beats: 3 out of the last 4 quarters
- Next-year EPS estimates have been revised upward by 49.8% over the past three months
- Next-year revenue estimates have been revised upward by 12.3% over the same period
The earnings acceleration is particularly notable. After a down year, EPS growth moved to +7.6% in the last reported full year and then jumped to nearly 50% on a trailing twelve-month basis. Profit margins have also improved from 1.42% two quarters ago to 2.48% in the most recent quarter, a sign that the growth is translating into stronger profitability.
For Minervini-style investors, this is the right kind of fundamental setup. The strategy emphasizes companies with big earnings gains because those numbers attract institutional attention. Upward estimate revisions, like the ones Arrow Electronics is seeing, are often the catalyst that drives further buying once the technical setup is in place.
Why the Combination Matters
The strength of the Minervini approach is that it does not rely on charts alone, nor does it rely on fundamentals alone. A stock can have a beautiful uptrend and weak growth, or strong growth and a broken chart. The edge comes from finding names where both are aligned.
Arrow Electronics offers that alignment. The Trend Template confirms that the stock is in a healthy uptrend with strong relative strength, while the growth metrics confirm that the uptrend is being supported by real earnings and revenue momentum. That combination historically tends to produce the kind of high-momentum leaders Minervini seeks, especially when the stock is still within striking distance of its 52-week high.
The short-term trend is currently neutral, which can be a positive feature for a breakout trader. It means the stock is consolidating rather than extended, and it gives the current setup room to work. The broader long-term trend remains positive, and the stock has outperformed 94% of the market over the past year, with those gains spread steadily rather than coming in one sharp spike.
What the Technical Report Shows
From a technical standpoint, the report is constructive across the board. The stock earns a technical rating of 9 out of 10 and a setup rating of 8 out of 10, reflecting both solid trend health and a workable consolidation pattern. Support is clustered around $215.48, which is also near the 50-day moving average, while resistance sits in the $232.71 to $234.84 zone.
Investors reviewing the current technical picture can find the detailed breakdown on the technical analysis report page.
The combination of a high technical rating, a decent setup score, and a strong fundamental story is exactly what this screen is designed to capture. The suggested trade setup points to an entry above the 10-day high near $220.97, with a stop-loss below the support zone near $212.69, a distance that equates to roughly 3.75% risk from the entry level.
For traders and growth investors who want to apply the same filter across a broader universe, more stocks matching this methodology can be found through the latest screen results.
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. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »
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Arrow Electronics (NYSE:ARW) Passes Minervini's Trend Template and High Growth Momentum Screen
The Mark Minervini trading approach is built on a simple premise: the biggest stock market winners are already in strong uptrends before they make their largest moves, and those technical trends are typically backed by accelerating earnings growth. The scan that produced this candidate combines Minervini's Trend Template, which filters for price and moving-average alignment, with a High Growth Momentum check, which ensures that a company's earnings and sales are expanding at a pace suited to growth investors. One stock that fits this combined methodology is ARROW ELECTRONICS INC (NYSE:ARW).
Trend Template Compliance
Minervini's Trend Template is designed to isolate stocks that are in a confirmed Stage 2 uptrend, with price action, moving averages, and relative strength all pointing in the same direction. Arrow Electronics passes those tests cleanly:
These are not arbitrary boxes to tick. Minervini's rules are designed to keep traders focused on stocks that already have institutional support and are near their highs, rather than trying to catch falling knives. A stock that is above rising moving averages and close to its 52-week high is showing persistent demand, which is exactly the environment where momentum can continue.
High Growth Momentum Qualification
The technical picture is strong, but the strategy also demands fundamental confirmation. Arrow Electronics delivers on that side as well, with earnings and revenue trends that have accelerated sharply in recent quarters.
Key high-growth evidence:
The earnings acceleration is particularly notable. After a down year, EPS growth moved to +7.6% in the last reported full year and then jumped to nearly 50% on a trailing twelve-month basis. Profit margins have also improved from 1.42% two quarters ago to 2.48% in the most recent quarter, a sign that the growth is translating into stronger profitability.
For Minervini-style investors, this is the right kind of fundamental setup. The strategy emphasizes companies with big earnings gains because those numbers attract institutional attention. Upward estimate revisions, like the ones Arrow Electronics is seeing, are often the catalyst that drives further buying once the technical setup is in place.
Why the Combination Matters
The strength of the Minervini approach is that it does not rely on charts alone, nor does it rely on fundamentals alone. A stock can have a beautiful uptrend and weak growth, or strong growth and a broken chart. The edge comes from finding names where both are aligned.
Arrow Electronics offers that alignment. The Trend Template confirms that the stock is in a healthy uptrend with strong relative strength, while the growth metrics confirm that the uptrend is being supported by real earnings and revenue momentum. That combination historically tends to produce the kind of high-momentum leaders Minervini seeks, especially when the stock is still within striking distance of its 52-week high.
The short-term trend is currently neutral, which can be a positive feature for a breakout trader. It means the stock is consolidating rather than extended, and it gives the current setup room to work. The broader long-term trend remains positive, and the stock has outperformed 94% of the market over the past year, with those gains spread steadily rather than coming in one sharp spike.
What the Technical Report Shows
From a technical standpoint, the report is constructive across the board. The stock earns a technical rating of 9 out of 10 and a setup rating of 8 out of 10, reflecting both solid trend health and a workable consolidation pattern. Support is clustered around $215.48, which is also near the 50-day moving average, while resistance sits in the $232.71 to $234.84 zone.
Investors reviewing the current technical picture can find the detailed breakdown on the technical analysis report page.
The combination of a high technical rating, a decent setup score, and a strong fundamental story is exactly what this screen is designed to capture. The suggested trade setup points to an entry above the 10-day high near $220.97, with a stop-loss below the support zone near $212.69, a distance that equates to roughly 3.75% risk from the entry level.
For traders and growth investors who want to apply the same filter across a broader universe, more stocks matching this methodology can be found through the latest screen results.
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. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »