Would Mark Minervini consider ADMA BIOLOGICS INC (NASDAQ:ADMA) a top stock pick?

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

Checking the Minervini Trend Template.

ADMA 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)

ChartMill's Evaluation of Growth

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. ADMA has achieved a 7 out of 10:

Explosive Earnings Growth

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), ADMA highlights its ability to generate increasing profitability, showcasing a 275.0% growth.
• ADMA has experienced 485.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• ADMA has experienced 59.06% q2q revenue growth, indicating a significant sales increase.
• ADMA has demonstrated strong 1-year revenue growth of 65.16%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, ADMA 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

• ADMA has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• ADMA has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• ADMA showcases a robust Return on Equity (ROE) of 56.64%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• ADMA has a Debt/Equity ratio of 0.21, indicating a balanced approach to financing growth.

Institutional Confidence & Market Strength

• With 88.05% of the total shares held by institutional investors, ADMA showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• ADMA has exhibited strong Relative Strength(RS) in recent periods, with a current 99.15 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Why is ADMA a setup?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, ADMA has a 3 as its setup rating:

Although ADMA 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.

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

Concluding

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