Is AURINIA PHARMACEUTICALS INC (NASDAQ:AUPH) following the Minervini trend for explosive growth?

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

Does AUPH pass the Minervini Trend Template check?

AUPH 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)

Growth Examination for AUPH

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 AUPH, the assigned 6 reflects its growth potential:

Earnings Momentum

• The EPS of AUPH has exhibited growth from one quarter to another (Q2Q), with a 105.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Over the past year, AUPH has demonstrated 117.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• AUPH has demonstrated strong q2q revenue growth of 32.76%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• The sales growth of AUPH is accelerating: the current Q2Q growth of 32.76% is above the previous quarter Q2Q growth of 24.3%. Sales momentum and acceleration are key for high growth systems.
• AUPH has achieved significant 1-year revenue growth of 33.97%, 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.
• With a track record of beating EPS estimates in the last 4 quarters, AUPH showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• The operating margin of AUPH 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.
• With positive growth in its free cash flow (FCF) over the past year, AUPH showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• Maintaining a Debt-to-Equity ratio of 0.16, AUPH demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.

Market Strength

• AUPH has achieved an impressive Relative Strength (RS) rating of 93.53, showcasing its ability to outperform the broader market.

Why is AUPH a setup?

The Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For AUPH this score is currently 7:

Besides having an excellent technical rating, AUPH also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 7.89, a Stop Loss order could be placed below this zone.

Our latest full technical report of AUPH 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 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.