Why ASCENDIS PHARMA A/S - ADR (NASDAQ:ASND) could fit Mark Minervini’s high-growth criteria

In this article we will dive into ASCENDIS PHARMA A/S - ADR (NASDAQ:ASND) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ASCENDIS PHARMA A/S - ADR showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Checking the Minervini Trend Template.

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)

Unpacking ASND's High Growth Momentum Rating

ChartMill assigns a High Growth Momentum Rating (HGM) to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth and profitability elements, including EPS and revenue growth, accelleration, surprises and revisions. In the case of ASND, the assigned 4 reflects its growth potential:

Explosive Earnings Growth

• The recent financial report of ASND demonstrates a 58.44% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• ASND shows accelerating EPS growth: when comparing the current Q2Q growth of 58.44% to the previous quarter Q2Q growth of 40.28%, we see the growth rate improving.
• Sales growth accelerated for 2 quarters in a row.
• Over the past year, ASND has demonstrated 23.25% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The quarter-to-quarter (Q2Q) revenue growth of 26.3% of ASND has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• The sales growth of ASND is accelerating: the current Q2Q growth of 26.3% is above the previous quarter Q2Q growth of 20.4%. Sales momentum and acceleration are key for high growth systems.
• 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.

Profitability & Financial Strength

• ASND has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• ASND has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.

Market Strength

• The Relative Strength (RS) of ASND has been consistently solid, with a current 92.7 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How do we evaluate the setup for ASND?

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for ASND is 5:

Besides having an excellent technical rating, ASND also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. We notice that large players showed an interest for ASND in the last couple of days, which is a good sign.

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

Final Thoughts

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

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.