STAR BULK CARRIERS CORP (NASDAQ:SBLK) is a dry bulk shipping operator that emerges from a screen combining Mark Minervini's Trend Template with a High Growth Momentum filter. The strategy is designed to find stocks that are already in strong uptrends and also have the fundamental acceleration that can support further upside, and this company currently clears both hurdles.
What the screen is looking for
Minervini's Trend Template is a technical checklist that defines a Stage 2 uptrend. It requires price to be above key moving averages, those averages to be rising, and the stock to show high relative strength. The High Growth Momentum filter layers on fundamental criteria, looking for accelerating earnings, revenue, and analyst revisions. The filter also requires a composite rating of at least 4, which is a way to ensure the stock is not just trending but also growing.
A stock can pass one side of the test and still fail as a candidate. A strong uptrend with weak fundamentals can run out of fuel quickly. Strong fundamentals with a broken chart can stay depressed for longer than expected. The combined screen is a practical way to remove both of those problems.
How SBLK fits the Trend Template
SBLK's technical readings line up with the Minervini checklist on every major point:
- The current price of 30.06 is above the 50-day SMA at 27.14, the 150-day SMA at 25.35, and the 200-day SMA at 23.83.
- The 50-day SMA is above both the 150-day and 200-day averages, while the 150-day and 200-day SMAs are trending upward.
- The price is roughly 79.8% above its 52-week low of 16.72 and within about 2.7% of its 52-week high of 30.90.
- Relative strength is 90.92, above the 70 threshold Minervini uses and close to the 80s and 90s range he prefers.
That combination matters because Minervini's approach favors stocks near their highs, not stocks that are simply cheap. The proximity to the 52-week high shows that buyers are still in control, while the rising moving averages confirm the longer-term trend is still up. A full look at the technical structure, including support levels and trend-line analysis, is available in the technical analysis report.
High growth momentum in the fundamentals
The screen also requires fundamental strength, and SBLK shows a sharp acceleration in several important metrics:
- EPS growth over the trailing 12 months is 147.7%.
- EPS growth in the latest quarter versus the same quarter last year is roughly 1,000%.
- Revenue growth in the latest quarter is 86.6% year over year.
- Next-year EPS estimates have been revised up by 39.1% over the past three months.
- Next-year revenue estimates have been revised up by 11.2% over the same period.
- The company beat earnings estimates in three of the last four quarters, with an average beat of 19.5%.
These are the kinds of numbers that high-growth momentum screens look for. It is worth noting that full-year revenue is still down year over year, which reflects the cyclical nature of the dry bulk shipping business. The most recent quarter, however, shows a clear swing back to growth, and the upward estimate revisions suggest analysts expect that momentum to continue.
Why this combination matters
The Minervini strategy is built around the idea that big earnings attract big attention. A stock that is already trending higher and then delivers accelerating earnings or upward revisions can attract institutional buyers, which often extends the move. The Trend Template keeps the trader on the right side of the trend, while the fundamental screen tries to identify companies where the story is still improving.
SBLK also operates in a cyclical industry where freight rates can move quickly. That can work in both directions, which is why the technical stop discipline is such a central part of the method. A rising 200-day moving average and high relative strength do not guarantee future gains, but they are consistent with the kind of market leadership Minervini looks for.
Technical report summary
The ChartMill technical report gives SBLK a top score on trend quality but a more cautious score on the current setup:
- Technical rating: 10 out of 10
- Setup rating: 6 out of 10
- Short-term trend: positive
- Long-term trend: positive
- The stock is trading near its 52-week high, with support zones identified between 28.66 and 29.11 and between 27.14 and 27.67.
The high technical rating reflects strength across both short and long timeframes. The setup rating of 6 is more moderate because recent price movement has been a bit too volatile to offer a clean, low-risk entry and exit. For a strategy that relies on precise entry points, that suggests waiting for a consolidation or buying a breakout with a defined stop.
A secondary check from cash flow
Beyond the earnings acceleration, SBLK also shows up in a High Free Cash Flow Stocks screen. That screen filters for strong free cash flow after necessary investments, along with quality and liquidity. The profile note says SBLK generates strong free cash flow relative to its market price, which is a useful secondary confirmation for a cyclical shipper: the recent earnings swing is not just paper growth, it is backed by cash that can support dividends, debt reduction, or reinvestment while the stock trends.
Finding more stocks using the same screen
Investors who want to apply this methodology across a broader universe can use the High Growth Momentum plus Trend Template screen to find additional names that meet the same technical and fundamental requirements. The screen narrows the market down to stocks that are both trending and growing, so the remaining list is much easier to review manually.
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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Star Bulk Carriers (NASDAQ:SBLK) Clears Minervini Trend Template and High Growth Momentum Screen
STAR BULK CARRIERS CORP (NASDAQ:SBLK) is a dry bulk shipping operator that emerges from a screen combining Mark Minervini's Trend Template with a High Growth Momentum filter. The strategy is designed to find stocks that are already in strong uptrends and also have the fundamental acceleration that can support further upside, and this company currently clears both hurdles.
What the screen is looking for
Minervini's Trend Template is a technical checklist that defines a Stage 2 uptrend. It requires price to be above key moving averages, those averages to be rising, and the stock to show high relative strength. The High Growth Momentum filter layers on fundamental criteria, looking for accelerating earnings, revenue, and analyst revisions. The filter also requires a composite rating of at least 4, which is a way to ensure the stock is not just trending but also growing.
A stock can pass one side of the test and still fail as a candidate. A strong uptrend with weak fundamentals can run out of fuel quickly. Strong fundamentals with a broken chart can stay depressed for longer than expected. The combined screen is a practical way to remove both of those problems.
How SBLK fits the Trend Template
SBLK's technical readings line up with the Minervini checklist on every major point:
That combination matters because Minervini's approach favors stocks near their highs, not stocks that are simply cheap. The proximity to the 52-week high shows that buyers are still in control, while the rising moving averages confirm the longer-term trend is still up. A full look at the technical structure, including support levels and trend-line analysis, is available in the technical analysis report.
High growth momentum in the fundamentals
The screen also requires fundamental strength, and SBLK shows a sharp acceleration in several important metrics:
These are the kinds of numbers that high-growth momentum screens look for. It is worth noting that full-year revenue is still down year over year, which reflects the cyclical nature of the dry bulk shipping business. The most recent quarter, however, shows a clear swing back to growth, and the upward estimate revisions suggest analysts expect that momentum to continue.
Why this combination matters
The Minervini strategy is built around the idea that big earnings attract big attention. A stock that is already trending higher and then delivers accelerating earnings or upward revisions can attract institutional buyers, which often extends the move. The Trend Template keeps the trader on the right side of the trend, while the fundamental screen tries to identify companies where the story is still improving.
SBLK also operates in a cyclical industry where freight rates can move quickly. That can work in both directions, which is why the technical stop discipline is such a central part of the method. A rising 200-day moving average and high relative strength do not guarantee future gains, but they are consistent with the kind of market leadership Minervini looks for.
Technical report summary
The ChartMill technical report gives SBLK a top score on trend quality but a more cautious score on the current setup:
The high technical rating reflects strength across both short and long timeframes. The setup rating of 6 is more moderate because recent price movement has been a bit too volatile to offer a clean, low-risk entry and exit. For a strategy that relies on precise entry points, that suggests waiting for a consolidation or buying a breakout with a defined stop.
A secondary check from cash flow
Beyond the earnings acceleration, SBLK also shows up in a High Free Cash Flow Stocks screen. That screen filters for strong free cash flow after necessary investments, along with quality and liquidity. The profile note says SBLK generates strong free cash flow relative to its market price, which is a useful secondary confirmation for a cyclical shipper: the recent earnings swing is not just paper growth, it is backed by cash that can support dividends, debt reduction, or reinvestment while the stock trends.
Finding more stocks using the same screen
Investors who want to apply this methodology across a broader universe can use the High Growth Momentum plus Trend Template screen to find additional names that meet the same technical and fundamental requirements. The screen narrows the market down to stocks that are both trending and growing, so the remaining list is much easier to review manually.
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 »