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

In this article we will dive into SKYWARD SPECIALTY INSURANCE (NASDAQ:SKWD) as a possible candidate for growth investing. Investors should always do their own research, but we noticed SKYWARD SPECIALTY INSURANCE showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

A Technical Analysis using 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)

ChartMill's Evaluation of Growth

ChartMill assigns a High Growth Momentum Rating (HGM) to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth and profitability elements, including EPS and revenue growth, accelleration, surprises and revisions. In the case of SKWD, the assigned 5 reflects its growth potential:

Earnings Momentum

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), SKWD highlights its ability to generate increasing profitability, showcasing a 31.15% growth.
• Accelerating EPS growth for SKWD: the current Q2Q growth of 31.15% exceeds the previous quarter Q2Q growth of 9.23%.
• The 1-year EPS growth of SKWD (45.71%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The 3-year EPS growth of SKWD (41.21%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The quarter-to-quarter (Q2Q) revenue growth of 23.59% of SKWD has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• The sales growth of SKWD is accelerating: the current Q2Q growth of 23.59% is above the previous quarter Q2Q growth of 19.18%. Sales momentum and acceleration are key for high growth systems.
• SKWD has achieved significant 1-year revenue growth of 30.49%, 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.
• SKWD 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

• 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.
• In the past year SKWD has expanded its Profit Margin, which demonstrates increasing profitability.
• The Return on Equity(ROE) of SKWD is 14.97%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• A Debt/Equity ratio of 0.15 suggests that SKWD is managing its debt levels responsibly.

Market Strength

• SKWD has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 96.72 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

How do we evaluate the setup for SKWD?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, SKWD has a 7 as its setup rating:

Besides having an excellent technical rating, SKWD also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 54.82. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 49.13, a Stop Loss order could be placed below this zone.

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

Final Thoughts

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

Keep in mind

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.