Checking if TRIUMPH GROUP INC (NYSE:TGI) meets Minervini’s stock selection rules

Our stock screener has spotted TRIUMPH GROUP INC (NYSE:TGI) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Checking the Minervini Trend Template.

TGI 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)

Why NYSE:TGI may be interesting for high growth investors.

Earnings Momentum

• The earnings per share (EPS) of TGI have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 269.0% increase. This reflects the company's ability to improve its profitability over time.
• TGI has achieved 414.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• The earnings per share (EPS) growth of TGI are accelerating: the current Q2Q growth of 269.0% is above the previous year Q2Q growth of -233.0%. Earnings momentum and acceleration are key for high growth systems.
• TGI has a strong history of beating EPS estimates 3 times 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

• TGI 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 positive growth in its free cash flow (FCF) over the past year, TGI 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.

Institutional Confidence & Market Strength

• TGI demonstrates a balanced ownership structure, with institutional shareholders at 106.0%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• TGI has exhibited strong Relative Strength(RS) in recent periods, with a current 96.39 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. TRIUMPH GROUP INC shows promising potential for continued price momentum.

How does the Setup look for NYSE:TGI

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:TGI is 8:

TGI has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 25.37. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.33, a Stop Loss order could be placed below this zone.

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

Concluding

It looks like TRIUMPH GROUP 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.