Is NASDAQ:GMAB on the Verge of a Major Breakout as a Strong Growth Stock?

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

Exploring NASDAQ:GMAB's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:GMAB has received a 8 out of 10:

• Measured over the past years, GMAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.70% on average per year.
• GMAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.87%.
• The Revenue has been growing by 40.35% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 23.65% on average over the next years. This is a very strong growth
• GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.51% yearly.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GMAB has received a 8 out of 10:

• GMAB has an Altman-Z score of 20.50. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• GMAB has a Altman-Z score of 20.50. This is amongst the best in the industry. GMAB outperforms 93.21% of its industry peers.
• The Debt to FCF ratio of GMAB is 0.19, which is an excellent value as it means it would take GMAB, only 0.19 years of fcf income to pay off all of its debts.
• GMAB has a better Debt to FCF ratio (0.19) than 97.74% of its industry peers.
• GMAB has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
• GMAB has a Current Ratio of 12.46. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 12.46, GMAB belongs to the top of the industry, outperforming 83.62% of the companies in the same industry.
• A Quick Ratio of 12.42 indicates that GMAB has no problem at all paying its short term obligations.
• GMAB's Quick ratio of 12.42 is amongst the best of the industry. GMAB outperforms 83.62% of its industry peers.

How do we evaluate the Profitability for NASDAQ:GMAB?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GMAB has achieved a 7:

• GMAB's Return On Assets of 14.86% is amongst the best of the industry. GMAB outperforms 98.78% of its industry peers.
• The Return On Equity of GMAB (16.77%) is better than 97.39% of its industry peers.
• GMAB has a Return On Invested Capital of 13.05%. This is amongst the best in the industry. GMAB outperforms 96.86% of its industry peers.
• GMAB has a Profit Margin of 30.69%. This is amongst the best in the industry. GMAB outperforms 98.61% of its industry peers.
• With an excellent Operating Margin value of 32.00%, GMAB belongs to the best of the industry, outperforming 98.78% of the companies in the same industry.
• With an excellent Gross Margin value of 91.47%, GMAB belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.

Why is NASDAQ:GMAB a setup?

Alongside the Technical Rating, 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 NASDAQ:GMAB is 7:

Although the technical rating is bad, GMAB does present a nice setup opportunity. 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 resistance zone just above the current price starting at 28.38. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for GMAB in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of GMAB contains the most current fundamental analsysis.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.