Does GOOSEHEAD INSURANCE INC -A (NASDAQ:GSHD) meet the Minervini criteria?

Our stock screener has spotted GOOSEHEAD INSURANCE INC -A (NASDAQ:GSHD) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

GSHD passes the Minervini Trend Template check!

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for GSHD:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Looking into the high growth metrics of GSHD

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. GSHD scores a 5 out of 10:

Earnings Momentum

• GSHD has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 182.0% increase. This indicates improving financial performance and the company's effective management of its operations.
• Accelerating EPS growth for GSHD: the current Q2Q growth of 182.0% exceeds the previous quarter Q2Q growth of 8.7%.
• EPS acceleration happened 2 quarters in a row.
• GSHD has experienced 51.52% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• The 3-year EPS growth of GSHD (60.91%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The recent q2q revenue growth of 49.05% of GSHD showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• Accelerating Sales growth for GSHD: the current Q2Q growth of 49.05% exceeds the previous quarter Q2Q growth of 9.86%.
• GSHD has achieved significant 1-year revenue growth of 20.37%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• GSHD has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Profitability & Financial Strength

• With a favorable trend in its operating margin over the past year, GSHD demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• GSHD has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• With positive growth in its free cash flow (FCF) over the past year, GSHD showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• GSHD exhibits a strong Return on Equity (ROE) of 69.32%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a current Debt-to-Equity ratio at 1.87, GSHD showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.

Strong Market Performance

• GSHD has exhibited strong Relative Strength(RS) in recent periods, with a current 97.38 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How does the Setup look for GSHD

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. GSHD currently has a 7 as setup rating:

GSHD has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 119.41, a Stop Loss order could be placed below this zone.

Check the latest full technical report of GSHD for a complete technical analysis.

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.