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

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

AEVA passes the Minervini Trend Template check!

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)

ChartMill's Evaluation of Growth

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. AEVA has achieved a 4 out of 10:

Earnings Momentum

• The earnings per share (EPS) of AEVA have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 45.56% increase. This reflects the company's ability to improve its profitability over time.
• The earnings per share (EPS) growth of AEVA is accelerating: the current Q2Q growth of 45.56% is above the previous quarter Q2Q growth of 26.67%. Earnings momentum and acceleration are key for high growth systems.
• Over the past year, AEVA has demonstrated 33.23% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• AEVA has achieved significant quarter-to-quarter (Q2Q) revenue growth of 67.35%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• AEVA has demonstrated strong 1-year revenue growth of 110.0%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• The average next Quarter EPS Estimate by analysts was adjusted by 17.39%, reflecting the evolving market expectations for the company's EPS growth.
• 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.

Profitability & Financial Strength

• With positive growth in its operating margin over the past year, AEVA showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• With a Debt/Equity ratio of 0.0, AEVA demonstrates prudent financial management.

Strong Market Performance

• AEVA has exhibited strong Relative Strength(RS) in recent periods, with a current 98.59 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How do we evaluate the setup for AEVA?

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, AEVA has a 6 as its setup rating:

Besides having an excellent technical rating, AEVA also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price.

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

Final Thoughts

It looks like AEVA TECHNOLOGIES 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.