Is TUYA INC (NYSE:TUYA) following the Minervini trend for explosive growth?

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

Minervini Trend Template Analysis.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for TUYA:

• ✔ 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)

High Growth Assessment of TUYA

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. TUYA has achieved a 4 out of 10:

Earnings Momentum

• In the most recent financial report, TUYA reported a 100.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The 1-year EPS growth of TUYA (367.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 27.4%, TUYA exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• With notable 1-year revenue growth of 29.84%, TUYA 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.
• TUYA 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

• The operating margin of TUYA has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• A Debt/Equity ratio of 0.0 highlights TUYA's commitment to maintaining financial stability.

Strong Market Performance

• TUYA has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 98.39 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Looking at the Setup

ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, TUYA has a 6 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, TUYA also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 4.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 3.70, a Stop Loss order could be placed below this zone.

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

More like this

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

Keep in mind

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.