Is PALOMAR HOLDINGS INC (NASDAQ:PLMR) a Minervini-style stock?

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PALOMAR HOLDINGS INC (NASDAQ:PLMR) is suited for growth investing. Investors should of course do their own research, but we spotted PALOMAR HOLDINGS INC showing up in our Minervini growth screen, so it may be worth spending some more time on it.

Does PLMR pass the Minervini Trend Template check?

PLMR checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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)

ChartMill's Evaluation of Growth

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. PLMR has achieved a 7 out of 10:

Earnings Momentum

• PLMR has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 36.94% increase. This indicates improving financial performance and the company's effective management of its operations.
• Accelerating EPS growth for PLMR: the current Q2Q growth of 36.94% exceeds the previous quarter Q2Q growth of 33.7%.
• Over the past year, PLMR has demonstrated 37.94% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• PLMR has experienced 35.41% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• PLMR has experienced 23.28% q2q revenue growth, indicating a significant sales increase.
• With notable 1-year revenue growth of 47.33%, PLMR exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• The average next Quarter EPS Estimate for PLMR has experienced a 10.65% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• PLMR has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Profitability & Financial Strength

• With a favorable trend in its profit margin over the past year, PLMR demonstrates its ability to enhance profitability through efficient operations.
• The free cash flow (FCF) of PLMR has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• PLMR has a healthy Return on Equity(ROE) of 16.13%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• At a Debt/Equity ratio of 0.0, PLMR seems well-positioned to sustain growth while keeping debt in check.

Market Strength & Institutional Confidence

• The ownership composition of PLMR reflects a balanced investor ecosystem, with institutional shareholders owning 94.85%. This indicates a broader market participation and potential for increased trading liquidity.
• The Relative Strength (RS) of PLMR has been consistently solid, with a current 98.11 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How do we evaluate the setup for PLMR?

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for PLMR is 4:

PLMR has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

For an up to date full technical analysis you can check the technical report of PLMR

More like this

It looks like PALOMAR HOLDINGS INC meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.