Would Mark Minervini consider SUPER GROUP SGHC LTD (NYSE:SGHC) a top stock pick?

Our stock screener has spotted SUPER GROUP SGHC LTD (NYSE:SGHC) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Checking the Minervini Trend Template.

SGHC 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 SGHC

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. SGHC was assigned a score of 5 for growth:

Explosive Earnings Growth

• The EPS of SGHC has exhibited growth from one quarter to another (Q2Q), with a 1.0K% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• The earnings per share (EPS) growth of SGHC is accelerating: the current Q2Q growth of 1.0K% is above the previous quarter Q2Q growth of 60.0%. Earnings momentum and acceleration are key for high growth systems.
• EPS acceleration happened 2 quarters in a row.
• The 1-year EPS growth of SGHC (127.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• SGHC has achieved significant quarter-to-quarter (Q2Q) revenue growth of 38.92%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.

Profitability & Financial Strength

• SGHC maintains a healthy Debt-to-Equity ratio of 0.05. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.

Strong Market Performance

• The Relative Strength (RS) of SGHC has consistently been strong, with a current 98.31 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

How do we evaluate the setup for SGHC?

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, SGHC exhibits a 3 setup rating, indicating its consolidation status in recent days and weeks.

Although SGHC has an excellent technical rating, it does not offer a high quality setup 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.

Our latest full technical report of SGHC contains the most current technical analsysis.

Concluding

It looks like SUPER GROUP SGHC LTD meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

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.