Does AEVA TECHNOLOGIES INC (NASDAQ:AEVA) meet the Minervini criteria?

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

A Technical Analysis using the Minervini Trend Template.

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

• ✔ 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)

Unpacking AEVA's High Growth Momentum Rating

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. AEVA was assigned a score of 4 for growth:

Explosive Earnings Growth

• AEVA has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 45.56% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• Accelerating EPS growth for AEVA: the current Q2Q growth of 45.56% exceeds the previous quarter Q2Q growth of 26.67%.
• AEVA has achieved 33.23% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• AEVA has achieved 67.35% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• With notable 1-year revenue growth of 110.0%, AEVA 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.
• Over the past 3 months, analysts have adjusted their EPS Estimate for AEVA with a 13.04% change. This highlights the evolving outlook on the company's EPS potential.
• AEVA has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Financial Strength & Profitability

• The operating margin of AEVA 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.
• AEVA exhibits a favorable Debt-to-Equity ratio at 0.0. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.

Market Strength

• AEVA has exhibited strong Relative Strength(RS) in recent periods, with a current 97.33 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Looking at the Setup

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 AEVA is 2:

Although AEVA has an excellent technical rating, it does not present a decent entry opportunity at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation.

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

Final Thoughts

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

Disclaimer

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.