Arbutus Biopharma (NASDAQ:ABUS) Shows Strong Technical and Fundamental Momentum

A systematic method for finding promising growth stocks combines detailed technical study with fundamental momentum screening. The process uses Mark Minervini's Trend Template to confirm stocks show solid technical traits, while also using a High Growth Momentum filter to find companies showing improved business performance. This two-part method aims to identify stocks set for possible price gains supported by both technical health and fundamental progress.

Technical Health and Trend Template Conformity

Arbutus Biopharma Corp (NASDAQ:ABUS) shows solid technical traits that match Minervini's Trend Template standards. The stock currently trades above all main moving averages, with its price situated above the 50-day ($4.10), 150-day ($3.57), and 200-day ($3.51) simple moving averages. This arrangement meets several Trend Template conditions at once, signaling both near-term and longer-term positive momentum.

The moving average setup shows a classic positive order:

• 50-day SMA above both 150-day and 200-day SMAs
• 150-day SMA moving above the 200-day SMA
• All main moving averages showing upward directions

This technical setup is important within the Minervini system because it finds stocks in confirmed Stage 2 upward moves, which in the past have offered the most attractive risk-return setups for momentum investors. The stock's place about 68% higher than its 52-week low of $2.70 while trading within 11% of its 52-week high of $5.10 further supports its solid technical condition.

Relative Performance and Market Position

The stock's relative strength score of 85.67 indicates it is performing better than about 86% of all stocks in the market. This measure is especially important in the Minervini method, which notes that genuine market leaders usually show relative strength scores over 70, with the strongest stocks often having scores in the 80s or 90s. This degree of relative performance suggests institutional buying and places the stock as a possible leader in its field.

Within the biotechnology field, Arbutus shows good relative performance, doing better than 67% of its 534 industry competitors. While not the single best performer in its field, this still represents better-than-average health in a very active industry known for large price changes and strong competition for investor money.

Fundamental Progress Momentum

The fundamental picture of Arbutus Biopharma shows several traits that fit high-growth investment standards. The company has shown marked improvement in main financial measures, especially in recent periods:

Earnings and Sales Improvement:

• Quarterly EPS growth of 109% compared to the same quarter previous year
• Sales growth of 522% in the most recent quarter
• Three EPS estimate beats in the last four quarters, averaging 29.6% above expectations

Analyst Outlook and Changes:

• Next-year EPS estimates changed upward by 34% over the past three months
• Next-year sales estimates changed upward by 130% during the same period
• Solid forward-looking growth estimates for coming periods

These fundamental gains are key within the growth investing system because notable earnings surprises and positive estimate changes often draw institutional interest and can come before considerable price gains. The mix of solid technicals with improving fundamental momentum forms a noteworthy investment case.

Price Stability and Pattern Condition

The technical study report gives Arbutus a good technical score of 8 out of 10, reflecting its solid trend traits across several timeframes. The pattern score of 6 indicates the stock is currently forming a period of stability that could offer a possible entry point. The stock has been trading in a set area between $4.10 and $4.66 over the past month, with current price activity situated in the middle of this area.

Main support and resistance points noted in the technical study include:

• Good support between $4.08 and $4.10 from several trendlines and moving averages
• Resistance near $4.55 to $4.56 from weekly trendlines
• Extra support points at $4.20, $3.38, $3.29, and $3.06

This technical setup gives clear points for risk control, which is a main part of the Minervini method. The presence of set support levels allows for exact stop-loss setting, while resistance breakouts could signal possible entry points for momentum to continue.

Technical Study Overview

The full technical study indicates Arbutus Biopharma maintains good technical condition with a score of 8/10, supported by positive longer-term trends and neutral near-term momentum. The stock trades in the higher part of its 52-week area, though it is slightly behind the wider market which is testing new highs. Trading volume remains solid with an average of 1.2 million shares daily, giving enough liquidity for institutional activity.

The technical setup shows a reasonable pattern with prices stabilizing near resistance around $4.55. A clear move above this point could possibly set off momentum-based buying interest. The study finds several support areas that give logical places for stop-loss setting, improving the risk-return setup for possible position entry.

View the full technical study report for detailed charts and extra information.

Finding Other Opportunities

The screening method that found Arbutus Biopharma can be used to find other possible high-growth momentum candidates. Investors looking for similar opportunities can access the full screening results to examine extra companies meeting both the Trend Template standards and high growth momentum needs.

Disclaimer: This study is for informational and educational reasons only and does not form investment advice. The information given should not be taken as a suggestion to buy or sell any security. Investors should do their own research and talk with a qualified financial advisor before making investment choices. Past results are not a guarantee of future outcomes.