NuScale Power Corp (NYSE:SMR) Identified by Minervini Trend Template and High Growth Momentum Screen

NuScale Power Corp (NYSE:SMR) has been identified through a screening method that joins Mark Minervini’s strict Trend Template with a High Growth Momentum (HGM) rating. This two-part method tries to find companies that are not only in strong technical uptrends but also show the fundamental signs of fast growth, a pairing that can indicate notable potential. The method intends to identify stocks during their most powerful performance periods, using both price momentum and basic business growth.

Meeting the Minervini Trend Template

A central idea of Mark Minervini’s method is to invest in stocks showing clear and continued upward momentum. The Trend Template uses a set of technical checkpoints to screen for this kind of strength. NuScale Power Corp fits with these conditions, showing it is in a confirmed Stage 2 advance.

Important technical fits include:

• The current stock price is trading above its main long-term moving averages (150-day and 200-day), a main sign of a sound bull market phase.
• The 150-day and 200-day moving averages are both pointing upward, confirming the long-term trend is positive.
• The shorter-term 50-day moving average is above both the 150-day and 200-day averages, an arrangement that shows increasing momentum.
• With a current price much higher than its 52-week low and not far from its high, the stock displays strong recovery and leadership possibility.
• Most importantly, the stock has a ChartMill Relative Strength (CRS) ranking of 96.91, meaning it is doing better than almost 97% of all stocks in the market. Minervini points out that market leaders with high relative strength are frequently the first to recover from downturns and lead new bull markets.

Fundamentals for High Growth Momentum

While technical strength describes the trend, fundamental speed is what frequently supports continued price increases. The High Growth Momentum rating for SMR is backed by very fast expansion in its business operations, a main point for growth investors.

The company’s revenue growth is especially notable:

• Revenue growth on a trailing twelve-month (TTM) basis has jumped by more than 305%.
• Quarterly sales growth is even more pronounced, with the latest quarter showing a rise of 733% compared to the same quarter last year.
• This sales speed is steady, with the two previous quarters also reporting growth rates of 870% and 651%, in that order.

This very fast top-line growth is important as it implies the company’s advanced small modular reactor technology is getting notable market acceptance. While the company is not yet profitable—a typical trait of new, fast-growth companies in industries requiring large investment—the quick revenue expansion gives a fundamental reason for the stock’s strong technical performance. Large earnings and sales increases draw major interest from institutional investors, a force Minervini identifies as a main cause for superperformance.

Technical Health and Setup Considerations

The provided technical analysis report gives NuScale Power Corp a high technical rating of 9 out of 10, reflecting its sound trend strength across several timeframes. The report states the stock is trading in the higher part of its 52-week range and that recent volume has risen significantly, backing the price movement.

However, the report also points out a lower setup rating of 3. This shows that while the stock’s general health is very good, its recent price movement has been unstable, making it difficult to find a low-risk entry point with a specific exit plan. For traders following Minervini’s method closely, this implies a time of consolidation could be required to create a more specific Volatility Contraction Pattern (VCP) before a good entry point appears.

Summary of Technical Outlook

The technical report for SMR describes a stock in a strong uptrend, backed by high relative strength and positive long-term momentum. Important support levels have been set, giving possible zones for risk management. The main warning is connected to entry timing, as the stock’s recent instability might need patience for those looking for a good risk/reward setup. For a full list of the support and resistance levels, with the entire analysis, you can see the complete technical report for SMR.

Discovering Similar Opportunities

NuScale Power Corp is an example of the kind of opportunity that appears when sound technical trends meet powerful fundamental growth. Investors curious about locating other stocks that satisfy this strict pairing of Minervini’s Trend Template and High Growth Momentum conditions can investigate the predefined screen here.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice of any kind. The analysis of NuScale Power Corp (SMR) is based on provided data and should not be considered a recommendation to buy or sell any security. All investing and trading involves risk, including the possible loss of principal. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.