Evaluating SKYWARD SPECIALTY INSURANCE (NASDAQ:SKWD) using Mark Minervini’s winning stock formula

Our stock screener has spotted SKYWARD SPECIALTY INSURANCE (NASDAQ:SKWD) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Checking the Minervini Trend Template.

SKWD 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)

What matters for high growth investors.

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. SKWD has achieved a 5 out of 10:

Earnings Momentum

• The earnings per share (EPS) of SKWD have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 31.15% increase. This reflects the company's ability to improve its profitability over time.
• SKWD shows accelerating EPS growth: when comparing the current Q2Q growth of 31.15% to the previous quarter Q2Q growth of 9.23%, we see the growth rate improving.
• SKWD has achieved 45.71% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• SKWD has experienced 41.21% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• SKWD has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 23.59%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• SKWD shows accelerating Sales growth: when comparing the current Q2Q growth of 23.59% to the previous quarter Q2Q growth of 19.18%, we see the growth rate improving.
• With notable 1-year revenue growth of 30.49%, SKWD 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.
• With a track record of beating EPS estimates in the last 4 quarters, SKWD showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Financial Strength & Profitability

• SKWD has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With a favorable trend in its profit margin over the past year, SKWD demonstrates its ability to enhance profitability through efficient operations.
• With a favorable Return on Equity (ROE) of 14.97%, SKWD demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• SKWD's Debt/Equity ratio of 0.15 suggests a healthy balance between debt financing and shareholder equity.

Strong Market Performance

• The Relative Strength (RS) of SKWD has been consistently solid, with a current 91.76 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

Why is SKWD a setup?

The Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For SKWD this score is currently 4:

Although SKWD has an excellent technical rating, the quality of the presented setup is not ideal 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 SKWD

More like this

It looks like SKYWARD SPECIALTY INSURANCE 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.