Evaluating DYNAVAX TECHNOLOGIES CORP (NASDAQ:DVAX) using Mark Minervini’s winning stock formula

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

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 DVAX:

• ✔ 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 DVAX

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. DVAX boasts a 6 out of 10:

Earnings Momentum

• The EPS of DVAX has exhibited growth from one quarter to another (Q2Q), with a 3.0K% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Accelerating EPS growth for DVAX: the current Q2Q growth of 3.0K% exceeds the previous quarter Q2Q growth of 26.33%.
• DVAX has achieved 400.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• DVAX has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 27.8%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• Accelerating Sales growth for DVAX: the current Q2Q growth of 27.8% exceeds the previous quarter Q2Q growth of 16.01%.
• The average next Quarter EPS Estimate for DVAX has experienced a 58.59% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• DVAX has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Profitability & Financial Strength

• DVAX 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.
• A Debt/Equity ratio of 0.38 indicates that DVAX is leveraging debt effectively without excessive risk.

Market Strength

• DVAX has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 82.06 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

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. DVAX currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

DVAX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 13.37, a Stop Loss order could be placed below this zone.

Check the latest full technical report of DVAX for a complete technical analysis.

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.