A strategy that combines Mark Minervini's Trend Template with high-growth momentum filters seeks stocks that are not only trending higher but also delivering accelerating fundamentals. The goal is to find companies that are already leading the market on both the chart and the income statement, which is why the screen pairs a strict trend checklist with a minimum High Growth Momentum rating. Using that methodology, the screen has identified STEVEN MADDEN LTD (NASDAQ:SHOO) as a stock that passes the technical trend test and shows several fundamental growth signals worth examining.
Trend Template: A Leader in a Strong Uptrend
Minervini's Trend Template requires a stock to trade above its key moving averages, with those averages aligned in a rising pattern. Steven Madden checks those boxes:
- Current price $48.26 is above the 50-day SMA ($43.63), the 150-day SMA ($40.29), and the 200-day SMA ($40.13); all three are rising.
- The 50-day SMA is above both the 150-day and 200-day SMAs, confirming a bullish alignment.
- The stock is roughly 97% above its 52-week low of $24.51, easily exceeding the 30% minimum.
- The price sits within 3% of its 52-week high of $49.70, and the stock is currently making new highs.
- Relative strength is 94.14, meaning SHOO has outperformed about 94% of the market over the measured period.
The technical report assigns a rating of 10 out of 10 for overall trend strength, reflecting consistent performance across short and long time frames. A more detailed breakdown of these indicators can be found in the full technical analysis report.
High-Growth Fundamentals: Earnings and Revenue Are Accelerating
The high-growth side of the screen looks for companies that are growing sales and profits quickly, ideally with upward revisions and earnings surprises. Steven Madden's recent numbers point in that direction:
- Revenue growth (TTM) is +18.15%, with the most recent quarter up +19.05% year over year.
- Quarterly EPS growth accelerated to +120% year over year in the latest quarter, after several negative quarters, indicating a sharp inflection.
- The company has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 11.34%.
- Next-year EPS estimates have been revised up by 2.09% over the last 3 months; next-year revenue estimates are up 1.58%.
- Free cash flow per share stands at $3.07, giving the company a reasonable cash generation profile.
Quarters ago, EPS and margins were under pressure, so the most recent quarterly jump matters. For Minervini's approach, this kind of acceleration is often the fundamental catalyst that supports a sustained price advance. Rising estimates and repeated beats also suggest that institutional investors are paying attention, which is a key ingredient for continued momentum.
Why This Combination Matters
Minervini's SEPA method looks for stocks in Stage 2 uptrends that combine leadership with a fundamental catalyst. The trend template filters for price strength, while the high-growth momentum rating filters for earnings and revenue acceleration. Steven Madden sits in the upper echelon of both; it is one of the better performing stocks in the market, and it is showing renewed fundamental momentum. That combination is what tends to produce strong risk/reward setups over time.
The Current Setup: Strong Stock, Volatile Entry
The technical report notes that the stock's long and short term trends are both positive and that the technical rating is excellent. However, the setup quality rating is only 3 out of 10. That means the recent price range has been too wide to define a clean, low-risk entry point. Investors looking for a Minervini-style buy point may need to wait for the stock to consolidate near its highs before a more favorable trigger appears.
For investors comfortable with the philosophy behind this strategy, more candidates that pass the same combined screen can be found via the live stock screen.
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.
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Steven Madden (NASDAQ:SHOO) Passes Minervini Trend Template With High-Growth Momentum
A strategy that combines Mark Minervini's Trend Template with high-growth momentum filters seeks stocks that are not only trending higher but also delivering accelerating fundamentals. The goal is to find companies that are already leading the market on both the chart and the income statement, which is why the screen pairs a strict trend checklist with a minimum High Growth Momentum rating. Using that methodology, the screen has identified STEVEN MADDEN LTD (NASDAQ:SHOO) as a stock that passes the technical trend test and shows several fundamental growth signals worth examining.
Trend Template: A Leader in a Strong Uptrend
Minervini's Trend Template requires a stock to trade above its key moving averages, with those averages aligned in a rising pattern. Steven Madden checks those boxes:
The technical report assigns a rating of 10 out of 10 for overall trend strength, reflecting consistent performance across short and long time frames. A more detailed breakdown of these indicators can be found in the full technical analysis report.
High-Growth Fundamentals: Earnings and Revenue Are Accelerating
The high-growth side of the screen looks for companies that are growing sales and profits quickly, ideally with upward revisions and earnings surprises. Steven Madden's recent numbers point in that direction:
Quarters ago, EPS and margins were under pressure, so the most recent quarterly jump matters. For Minervini's approach, this kind of acceleration is often the fundamental catalyst that supports a sustained price advance. Rising estimates and repeated beats also suggest that institutional investors are paying attention, which is a key ingredient for continued momentum.
Why This Combination Matters
Minervini's SEPA method looks for stocks in Stage 2 uptrends that combine leadership with a fundamental catalyst. The trend template filters for price strength, while the high-growth momentum rating filters for earnings and revenue acceleration. Steven Madden sits in the upper echelon of both; it is one of the better performing stocks in the market, and it is showing renewed fundamental momentum. That combination is what tends to produce strong risk/reward setups over time.
The Current Setup: Strong Stock, Volatile Entry
The technical report notes that the stock's long and short term trends are both positive and that the technical rating is excellent. However, the setup quality rating is only 3 out of 10. That means the recent price range has been too wide to define a clean, low-risk entry point. Investors looking for a Minervini-style buy point may need to wait for the stock to consolidate near its highs before a more favorable trigger appears.
For investors comfortable with the philosophy behind this strategy, more candidates that pass the same combined screen can be found via the live stock screen.
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 »