Does ARGENX SE - ADR (NASDAQ:ARGX) 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 ARGENX SE - ADR (NASDAQ:ARGX) is suited for growth investing. Investors should of course do their own research, but we spotted ARGENX SE - ADR 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.

ARGX 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)

High Growth Analysis for ARGX

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. ARGX has achieved a 7 out of 10:

Explosive Earnings Growth

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), ARGX highlights its ability to generate increasing profitability, showcasing a 155.0% growth.
• The 1-year EPS growth of ARGX (134.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• ARGX has experienced 82.18% q2q revenue growth, indicating a significant sales increase.
• The sales growth of ARGX is accelerating: the current Q2Q growth of 82.18% is above the previous quarter Q2Q growth of 73.82%. Sales momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 2 quarters in a row.
• With impressive 1-year revenue growth of 23.38%, ARGX showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• ARGX has seen a 34.64% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, ARGX demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With a favorable Return on Equity (ROE) of 19.54%, ARGX demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• At a Debt/Equity ratio of 0.01, ARGX seems well-positioned to sustain growth while keeping debt in check.

Market Strength

• ARGX has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 94.03 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Looking at the Setup

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. ARGX currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, ARGX also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 638.33. Right above this resistance zone may be a good entry point.

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

Concluding

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

Disclaimer

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.