The Mark Minervini strategy is a disciplined approach that combines a strict technical trend template with high-growth fundamental checks, screening for stocks already in strong uptrends and showing accelerating earnings and sales. AAR CORP (NYSE:AIR) is one such candidate that emerged from a combined High Growth Momentum and Trend Template screen, and the data shows why it fits the strategy on both sides of the equation.
A Strategy Built on Strength
Minervini’s Trend Template is designed to keep traders focused on market leaders in Stage 2 uptrends. The rules are deliberately strict: price must be above key moving averages, those moving averages must be aligned upward, the stock should be near its 52-week high, and relative strength must be well above average. The idea is to avoid stocks that are cheap or beaten down and to concentrate on names where institutional demand is already visible.
AAR clears those technical hurdles convincingly. The stock is trading at 140.04, comfortably above its 150-day moving average of 115.33 and its 200-day moving average of 107.15. The 50-day moving average of 128.77 sits above both longer-term averages, confirming bullish alignment across the timeframes that matter for this strategy.
Evidence for the Trend Template
- Current price: 140.04, above the 150-day SMA (115.33) and 200-day SMA (107.15)
- 50-day SMA (128.77) above both the 150-day and 200-day SMAs
- 200-day SMA is rising: 107.15 versus 106.86 in the prior period
- Price is roughly 96% above its 52-week low of 71.43
- Price is within about 4.6% of its 52-week high of 146.75
- Relative strength is 95.08, meaning the stock outperforms roughly 95% of the market
These conditions matter because they keep the portfolio aligned with the strongest names in the strongest trends. A stock near its high with high relative strength is often the type of leader that leads a new advance, which is exactly the profile Minervini looks for.
A High-Growth Fundamental Profile
On the fundamental side, AAR also fits the high-growth part of the screen. Minervini’s method emphasizes companies with improving earnings and revenue, positive estimate revisions, and repeated earnings surprises. The idea is that the fundamental strength provides fuel for the chart trend to continue.
The recent numbers point in that direction. Earnings per share grew 29.2% over the trailing twelve months, with quarterly EPS growth of 31.9% in the latest quarter compared with the same quarter last year. The company has beaten EPS estimates in all four of the most recent quarters, and the average beat was 9.6%. Revenue is also expanding: trailing twelve-month revenue grew 19.0%, and the most recent quarter showed 23.0% year-over-year growth. AAR has also beaten revenue estimates in four straight quarters.
Fundamental highlights
- EPS growth (TTM): 29.2%
- EPS growth (latest quarter, year-over-year): 31.9%
- EPS estimate beats: 4 of 4 quarters, with average beat of 9.6%
- Revenue growth (TTM): 19.0%
- Revenue growth (latest quarter, year-over-year): 23.0%
- Revenue estimate beats: 4 of 4 quarters, with average beat of 4.6%
- Full-year profit margin improved to 5.67% from 0.45% in the prior fiscal year
Analyst expectations also point to continued expansion, with next-quarter EPS growth estimated at 23.9% and next-quarter revenue growth estimated at 20.3%. That combination of realized growth and forward momentum is what the High Growth Momentum screen is meant to capture.
Why This Combination Matters
The Minervini approach works best when technical strength and fundamental growth confirm each other. A rising chart with high relative strength identifies the where and the when; accelerating earnings and revenue help explain why the stock is being bought. AAR offers both. It is trading near its highs while still showing double-digit growth and strong estimate execution, a mix that often attracts institutional interest and can extend the uptrend.
The stock also benefits from its place in the Aerospace & Defense industry, where it outperforms 91% of its industry peers. That sector-relative strength is another trait Minervini looks for: market leaders are typically leaders in their own industry first, before they become broad market leaders.
Technical Assessment and Setup Quality
The technical report for AAR is strong overall. The stock receives a technical rating of 10 out of 10, reflecting positive short-term and long-term trends and a market performance that outperforms 95% of all stocks. The setup rating is 6 out of 10, which signals that the stock has been consolidating in a more moderate way rather than showing an extremely tight base. There is a resistance zone just above the current price, starting near 143.15, and a support zone near 127.59 to 129.04. A suggested entry above the resistance zone would be around 143.63, with a stop-loss just below the support area at 131.94.
That setup implies a worst-case loss of roughly 8.14% on the trade, and a position sized at 12.29% of capital would keep portfolio risk near 1%. The setup is not without risk; the recent price range has been wide, and the 20-day moving average is not currently rising. Still, the broader trend remains firmly positive, and the reaction at the resistance zone will determine whether the next leg higher develops. Investors can review the full detail in the technical analysis report.
Finding More Stocks Like This
AAR’s combination of trend strength, relative strength, and high-growth fundamentals is not an accident; it is the product of a systematic screen that applies Minervini’s rules across the market. Investors looking for similar candidates can run the same methodology and see which stocks are currently passing both the trend template and the growth filters. More stocks matching this approach can be found through this stock screen.
The strategy does not guarantee every candidate will work out, and even solid setups need proper risk management. But for investors seeking a disciplined way to identify high-growth names in strong uptrends, AAR shows how the Minervini framework can surface a stock with both the technical profile and the fundamental backing to warrant a closer look.
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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AAR (NYSE:AIR) Passes Mark Minervini's High-Growth Momentum and Trend Template Screen
The Mark Minervini strategy is a disciplined approach that combines a strict technical trend template with high-growth fundamental checks, screening for stocks already in strong uptrends and showing accelerating earnings and sales. AAR CORP (NYSE:AIR) is one such candidate that emerged from a combined High Growth Momentum and Trend Template screen, and the data shows why it fits the strategy on both sides of the equation.
A Strategy Built on Strength
Minervini’s Trend Template is designed to keep traders focused on market leaders in Stage 2 uptrends. The rules are deliberately strict: price must be above key moving averages, those moving averages must be aligned upward, the stock should be near its 52-week high, and relative strength must be well above average. The idea is to avoid stocks that are cheap or beaten down and to concentrate on names where institutional demand is already visible.
AAR clears those technical hurdles convincingly. The stock is trading at 140.04, comfortably above its 150-day moving average of 115.33 and its 200-day moving average of 107.15. The 50-day moving average of 128.77 sits above both longer-term averages, confirming bullish alignment across the timeframes that matter for this strategy.
Evidence for the Trend Template
These conditions matter because they keep the portfolio aligned with the strongest names in the strongest trends. A stock near its high with high relative strength is often the type of leader that leads a new advance, which is exactly the profile Minervini looks for.
A High-Growth Fundamental Profile
On the fundamental side, AAR also fits the high-growth part of the screen. Minervini’s method emphasizes companies with improving earnings and revenue, positive estimate revisions, and repeated earnings surprises. The idea is that the fundamental strength provides fuel for the chart trend to continue.
The recent numbers point in that direction. Earnings per share grew 29.2% over the trailing twelve months, with quarterly EPS growth of 31.9% in the latest quarter compared with the same quarter last year. The company has beaten EPS estimates in all four of the most recent quarters, and the average beat was 9.6%. Revenue is also expanding: trailing twelve-month revenue grew 19.0%, and the most recent quarter showed 23.0% year-over-year growth. AAR has also beaten revenue estimates in four straight quarters.
Fundamental highlights
Analyst expectations also point to continued expansion, with next-quarter EPS growth estimated at 23.9% and next-quarter revenue growth estimated at 20.3%. That combination of realized growth and forward momentum is what the High Growth Momentum screen is meant to capture.
Why This Combination Matters
The Minervini approach works best when technical strength and fundamental growth confirm each other. A rising chart with high relative strength identifies the where and the when; accelerating earnings and revenue help explain why the stock is being bought. AAR offers both. It is trading near its highs while still showing double-digit growth and strong estimate execution, a mix that often attracts institutional interest and can extend the uptrend.
The stock also benefits from its place in the Aerospace & Defense industry, where it outperforms 91% of its industry peers. That sector-relative strength is another trait Minervini looks for: market leaders are typically leaders in their own industry first, before they become broad market leaders.
Technical Assessment and Setup Quality
The technical report for AAR is strong overall. The stock receives a technical rating of 10 out of 10, reflecting positive short-term and long-term trends and a market performance that outperforms 95% of all stocks. The setup rating is 6 out of 10, which signals that the stock has been consolidating in a more moderate way rather than showing an extremely tight base. There is a resistance zone just above the current price, starting near 143.15, and a support zone near 127.59 to 129.04. A suggested entry above the resistance zone would be around 143.63, with a stop-loss just below the support area at 131.94.
That setup implies a worst-case loss of roughly 8.14% on the trade, and a position sized at 12.29% of capital would keep portfolio risk near 1%. The setup is not without risk; the recent price range has been wide, and the 20-day moving average is not currently rising. Still, the broader trend remains firmly positive, and the reaction at the resistance zone will determine whether the next leg higher develops. Investors can review the full detail in the technical analysis report.
Finding More Stocks Like This
AAR’s combination of trend strength, relative strength, and high-growth fundamentals is not an accident; it is the product of a systematic screen that applies Minervini’s rules across the market. Investors looking for similar candidates can run the same methodology and see which stocks are currently passing both the trend template and the growth filters. More stocks matching this approach can be found through this stock screen.
The strategy does not guarantee every candidate will work out, and even solid setups need proper risk management. But for investors seeking a disciplined way to identify high-growth names in strong uptrends, AAR shows how the Minervini framework can surface a stock with both the technical profile and the fundamental backing to warrant a closer look.
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 »