Does PROTAGONIST THERAPEUTICS INC (NASDAQ:PTGX) align with Mark Minervini’s trading strategy?

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

PTGX passes the Minervini Trend Template check!

PTGX checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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)

Assessing Growth for PTGX

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. PTGX has earned a 5:

Earnings Momentum

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), PTGX highlights its ability to generate increasing profitability, showcasing a 350.0% growth.
• The earnings per share (EPS) growth of PTGX is accelerating: the current Q2Q growth of 350.0% is above the previous quarter Q2Q growth of 6.9%. Earnings momentum and acceleration are key for high growth systems.
• PTGX has experienced 382.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• PTGX has demonstrated strong q2q revenue growth of 184.0%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• PTGX has achieved significant 1-year revenue growth of 624.0%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• With a track record of beating EPS estimates in the last 4 quarters, PTGX showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Financial Strength & Profitability

• The operating margin of PTGX has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• PTGX has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• With a favorable Return on Equity (ROE) of 40.75%, PTGX demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• With a Debt/Equity ratio of 0.0, PTGX appears to have a manageable debt load relative to its assets.

Strong Market Performance

• PTGX has exhibited strong Relative Strength(RS) in recent periods, with a current 96.31 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Why is PTGX a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. PTGX scores a 3 out of 10:

Although PTGX has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

More like this

More ideas for high growth momentum stocks can be found on ChartMill 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.