Why Mark Minervini may look into RYAN SPECIALTY HOLDINGS INC (NYSE:RYAN)

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

Does RYAN pass 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 RYAN:

• ✔ 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)

Exploring RYAN's Growth

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. RYAN was assigned a score of 5 for growth:

Explosive Earnings Growth

• In the most recent financial report, RYAN reported a 28.57% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• Accelerating EPS growth for RYAN: the current Q2Q growth of 28.57% exceeds the previous quarter Q2Q growth of 28.13%.
• The 1-year EPS growth of RYAN (29.71%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• RYAN has experienced 24.52% q2q revenue growth, indicating a significant sales increase.
• The sales growth of RYAN is accelerating: the current Q2Q growth of 24.52% is above the previous quarter Q2Q growth of 20.48%. Sales momentum and acceleration are key for high growth systems.
• With notable 1-year revenue growth of 47.67%, RYAN 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.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, RYAN demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• The profit margin of RYAN has seen steady growth over the past year, signaling improved profitability.
• RYAN showcases a robust Return on Equity (ROE) of 17.62%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.

Market Strength & Institutional Confidence

• With institutional shareholders at 81.59%, RYAN demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• RYAN has achieved an impressive Relative Strength (RS) rating of 93.54, showcasing its ability to outperform the broader market.

Looking at the Setup

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 RYAN is 8:

RYAN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 75.40. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 68.57, a Stop Loss order could be placed below this zone.

Our latest full technical report of RYAN contains the most current technical analsysis.

More like this

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.