Why Mark Minervini may look into CIA CERVECERIAS UNI-SPON ADR (NYSE:CCU)

Our stock screener has spotted CIA CERVECERIAS UNI-SPON ADR (NYSE:CCU) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Does CCU pass the Minervini Trend Template check?

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

• ✔ 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)

Exploring CCU's Growth

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. CCU has achieved a 4 out of 10:

Explosive Earnings Growth

• The EPS of CCU has exhibited growth from one quarter to another (Q2Q), with a 77.7% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Over the past year, CCU has demonstrated 52.37% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• CCU has experienced 69.06% q2q revenue growth, indicating a significant sales increase.
• The sales growth of CCU is accelerating: the current Q2Q growth of 69.06% is above the previous quarter Q2Q growth of -3.04%. Sales momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 2 quarters in a row.
• Analysts' average next Quarter EPS Estimate for CCU has witnessed a 12.51% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.

Financial Strength & Profitability

• The free cash flow (FCF) of CCU has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• CCU exhibits a favorable Debt-to-Equity ratio at 0.87. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.

Market Strength

• The Relative Strength (RS) of CCU has been consistently solid, with a current 92.94 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

Why is CCU a setup?

ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, CCU has a 2 as its setup rating, indicating its current consolidation status.

Although CCU has an excellent technical rating, it does not offer a high quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation.

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

Concluding

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

Disclaimer

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.