The Mark Minervini playbook looks for stocks that combine a proven uptrend with accelerating fundamentals. The idea is that the biggest winners often show both technical leadership and improving earnings before they make their largest moves. TALOS ENERGY INC (NYSE:TALO) is a Houston-based oil and gas exploration and production company that currently clears the main Trend Template checks while also posting the kind of earnings, revenue, and estimate momentum that high-growth investors look for.
A Technical Profile Built for the Trend Template
Minervini’s Trend Template is designed to keep investors on the right side of the trend. The first set of rules centers on moving averages and price location, and the company checks those boxes at the moment:
- Price is above the 50-day ($14.41), 150-day ($14.18), and 200-day ($13.36) SMAs.
- The 50-day is above both the 150-day and 200-day.
- The 150-day is above the 200-day.
- The 200-day is rising, increasing from $13.33 to $13.36.
The stock also satisfies the template’s 52-week price rules. At $16.36, it sits roughly 84% above its 52-week low of $8.87 and within about 4% of its 52-week high of $17.05. That combination, well above the low and close to the high, is exactly the kind of strength Minervini wants to see.
Relative strength is another core part of the strategy. The ChartMill relative strength reading comes in at 91.52, meaning the stock has outperformed more than 91% of the market. Within its industry, Oil, Gas & Consumable Fuels, it outperforms 83% of peers. High relative strength of this type often points to institutions building positions before a broader move.
Investors who want to review the full technical breakdown can use this technical analysis report.
Why the Fundamentals Fit the High-Growth Screen
Minervini does not rely on charts alone. He has said that big earnings attract big attention, and leading stocks usually show improving sales, profits, and margins before their biggest price advances. The screen that produced this candidate pairs the Trend Template with a High Growth Momentum rating of at least 4, and the company’s fundamental profile supports that qualification:
- EPS growth over the trailing twelve months: +51.9%
- EPS growth, latest quarter vs. year ago: +311.1%
- Revenue growth, latest quarter vs. year ago: +56.5%
- Free cash flow per share (TTM): $1.98, with FCF growth of +231.8%
- Profit margin (latest quarter): 22.5%
- EPS estimate beats: 3 of the last 4 quarters, with an average beat of +44.9%
- Next-year EPS estimate revision over 3 months: +276.0%
- Next-year revenue estimate revision over 3 months: +12.3%
These are not just static metrics. The combination of positive earnings surprises, upward estimate revisions, and improving margins is the type of acceleration that Minervini says precedes sustained institutional buying. When analysts raise forecasts and a company keeps beating expectations, it often creates the demand needed to extend an existing uptrend.
What the Technical Report Adds
The ChartMill technical report gives the stock a perfect 10 out of 10 technical rating. Both the long-term and short-term trends are positive, and the stock has been trading in a consistent pattern of rising prices. The report also identifies one important resistance zone between $16.57 and $16.59, which aligns with the 52-week high area, and a support zone from $14.08 to $14.41 that combines trend lines and moving averages.
The main caveat is entry timing. Despite the excellent technical rating, the setup rating is only 3 out of 10. The report notes that price movement has been too volatile to find a clean entry and exit point at the moment. The stock has traded in a wide $13.50 to $16.90 range over the past month and is currently near the upper end. Buying after a large move without a consolidation zone can leave little room for a logical stop. It is also worth noting that trailing EPS remains negative, so the recent earnings acceleration still needs to translate into sustained profitability.
Finding More Minervini-Style Candidates
Investors who want to apply the same methodology across a broader universe can find additional stocks that pass both the Trend Template and the high-growth momentum requirements via this 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 »
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Talos Energy (NYSE:TALO) Fits the Minervini Trend Template With Accelerating Fundamentals
The Mark Minervini playbook looks for stocks that combine a proven uptrend with accelerating fundamentals. The idea is that the biggest winners often show both technical leadership and improving earnings before they make their largest moves. TALOS ENERGY INC (NYSE:TALO) is a Houston-based oil and gas exploration and production company that currently clears the main Trend Template checks while also posting the kind of earnings, revenue, and estimate momentum that high-growth investors look for.
A Technical Profile Built for the Trend Template
Minervini’s Trend Template is designed to keep investors on the right side of the trend. The first set of rules centers on moving averages and price location, and the company checks those boxes at the moment:
The stock also satisfies the template’s 52-week price rules. At $16.36, it sits roughly 84% above its 52-week low of $8.87 and within about 4% of its 52-week high of $17.05. That combination, well above the low and close to the high, is exactly the kind of strength Minervini wants to see.
Relative strength is another core part of the strategy. The ChartMill relative strength reading comes in at 91.52, meaning the stock has outperformed more than 91% of the market. Within its industry, Oil, Gas & Consumable Fuels, it outperforms 83% of peers. High relative strength of this type often points to institutions building positions before a broader move.
Investors who want to review the full technical breakdown can use this technical analysis report.
Why the Fundamentals Fit the High-Growth Screen
Minervini does not rely on charts alone. He has said that big earnings attract big attention, and leading stocks usually show improving sales, profits, and margins before their biggest price advances. The screen that produced this candidate pairs the Trend Template with a High Growth Momentum rating of at least 4, and the company’s fundamental profile supports that qualification:
These are not just static metrics. The combination of positive earnings surprises, upward estimate revisions, and improving margins is the type of acceleration that Minervini says precedes sustained institutional buying. When analysts raise forecasts and a company keeps beating expectations, it often creates the demand needed to extend an existing uptrend.
What the Technical Report Adds
The ChartMill technical report gives the stock a perfect 10 out of 10 technical rating. Both the long-term and short-term trends are positive, and the stock has been trading in a consistent pattern of rising prices. The report also identifies one important resistance zone between $16.57 and $16.59, which aligns with the 52-week high area, and a support zone from $14.08 to $14.41 that combines trend lines and moving averages.
The main caveat is entry timing. Despite the excellent technical rating, the setup rating is only 3 out of 10. The report notes that price movement has been too volatile to find a clean entry and exit point at the moment. The stock has traded in a wide $13.50 to $16.90 range over the past month and is currently near the upper end. Buying after a large move without a consolidation zone can leave little room for a logical stop. It is also worth noting that trailing EPS remains negative, so the recent earnings acceleration still needs to translate into sustained profitability.
Finding More Minervini-Style Candidates
Investors who want to apply the same methodology across a broader universe can find additional stocks that pass both the Trend Template and the high-growth momentum requirements via this 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 »