Why BANCO BILBAO VIZCAYA-SP ADR (NYSE:BBVA) could fit Mark Minervini’s high-growth criteria

Our stock screener has spotted BANCO BILBAO VIZCAYA-SP ADR (NYSE:BBVA) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for BBVA:

• ✔ 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)

Looking into the high growth metrics of BBVA

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 BBVA, the assigned 4 reflects its growth potential:

Earnings Momentum

• In the most recent financial report, BBVA reported a 24.24% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The 1-year EPS growth of BBVA (32.81%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• BBVA has experienced 33.16% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 29.38%, BBVA exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• The sales growth of BBVA is accelerating: the current Q2Q growth of 29.38% is above the previous quarter Q2Q growth of 1.98%. Sales momentum and acceleration are key for high growth systems.
• Analysts' average next Quarter EPS Estimate for BBVA has witnessed a 5.69% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.
• With a track record of beating EPS estimates in the last 4 quarters, BBVA 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 profit margin of BBVA has seen steady growth over the past year, signaling improved profitability.
• The Return on Equity(ROE) of BBVA is 17.37%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• A Debt/Equity ratio of 1.75 indicates that BBVA is leveraging debt effectively without excessive risk.

Market Strength

• BBVA has exhibited strong Relative Strength(RS) in recent periods, with a current 94.45 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How do we evaluate the setup for BBVA?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for BBVA is 7:

BBVA has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 14.29, a Stop Loss order could be placed below this zone.

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

Concluding

It looks like BANCO BILBAO VIZCAYA-SP 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.