Our stock screener has spotted ASCENDIS PHARMA A/S - ADR (NASDAQ:ASND) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.
Does ASND pass the Minervini Trend Template check?
ASND 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)
Assessing Growth for ASND
Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. ASND boasts a 4 out of 10:
Explosive Earnings Growth
ASND has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 58.44% increase. This indicates improving financial performance and the company's effective management of its operations.
Accelerating EPS growth for ASND: the current Q2Q growth of 58.44% exceeds the previous quarter Q2Q growth of 40.28%.
Sales acceleration happened 2 quarters in a row.
The 1-year EPS growth of ASND (23.25%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
The recent q2q revenue growth of 26.3% of ASND showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
ASND shows accelerating Sales growth: when comparing the current Q2Q growth of 26.3% to the previous quarter Q2Q growth of 20.4%, we see the growth rate improving.
Sales growth accelerated for 2 quarters in a row.
ASND has achieved significant 1-year revenue growth of 36.34%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
Financial Strength & Profitability
With a favorable trend in its operating margin over the past year, ASND demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
ASND has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
Market Strength
ASND has achieved an impressive Relative Strength (RS) rating of 77.92, showcasing its ability to outperform the broader market.
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. ASND currently holds a 4 as its setup rating, suggesting a particular level of consolidation in the stock.
ASND has an average technical rating and the quality of the presented setup is also not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.
It looks like ASCENDIS PHARMA A/S - ADR meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.
Keep in mind
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.