Evaluating INTRA-CELLULAR THERAPIES INC (NASDAQ:ITCI) using Mark Minervini’s winning stock formula

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

Does ITCI 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 ITCI:

• ✔ 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)

High Growth Analysis for ITCI

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. ITCI boasts a 5 out of 10:

Explosive Earnings Growth

• ITCI has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 46.67% increase. This indicates improving financial performance and the company's effective management of its operations.
• Accelerating EPS growth for ITCI: the current Q2Q growth of 46.67% exceeds the previous quarter Q2Q growth of 0.0%.
• ITCI has achieved 50.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 50.81%, ITCI showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• The sales growth of ITCI is accelerating: the current Q2Q growth of 50.81% is above the previous quarter Q2Q growth of 38.97%. Sales momentum and acceleration are key for high growth systems.
• The 1-year revenue growth of ITCI (46.61%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• Analysts' average next Quarter EPS Estimate for ITCI has witnessed a 42.86% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.

Profitability & Financial Strength

• ITCI has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With positive growth in its free cash flow (FCF) over the past year, ITCI 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.
• A Debt/Equity ratio of 0.0 indicates that ITCI is leveraging debt effectively without excessive risk.

Institutional Confidence & Market Strength

• With 94.75% of the total shares held by institutional investors, ITCI showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• ITCI has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 97.43 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Looking at the Setup

ChartMill also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, ITCI exhibits a 6 setup rating, indicating its consolidation status in recent days and weeks.

ITCI 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. There is a resistance zone just above the current price starting at 131.46. Right above this resistance zone may be a good entry point.

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

More like this

It looks like INTRA-CELLULAR THERAPIES INC meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

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.