Investors looking for high-growth chances often search for a mix of technical health and fundamental improvement. One organized method that joins these areas is the strategy made known by Mark Minervini. His framework centers on finding stocks already in strong upward moves, as set by his Trend Template, and then adding strict fundamental tests to confirm the price movement is supported by fast growth in earnings and sales. This pairing tries to find leaders early in their large price gains while controlling risk through firm technical rules.
ANAPTYSBIO INC (NASDAQ:ANAB) recently appeared through a scan made to find stocks that fit both the Minervini Trend Template and show high-growth momentum traits. This two-step method tries to find companies that are not only technically healthy but are also seeing the fundamental improvement that often supports continued price gains.
Technical Base: Following the Minervini Trend Template
The Minervini Trend Template gives a strict technical list to confirm a stock is in a clear, long-term upward move, what Minervini calls "Stage 2." The template's rules are made to remove weak or correcting stocks, making the investor look only at market leaders. ANAB's present chart shows agreement with these main ideas:
- Trend Agreement: The stock is trading above all its main simple moving averages (SMAs), the 50-day ($43.17), 150-day ($31.49), and 200-day ($28.74). Also, these averages are in the correct bullish order, with the shorter 50-day SMA above the longer 150-day and 200-day SMAs.
- Nearness to Highs: A main part of the strategy is to buy strength, not weakness. ANAB's present price is within 15% of its 52-week high of $52.47, meeting the template's need to be within 25% of the high. At the same time, the price is more than 30% above its 52-week low, showing a major recovery move is already happening.
- Better Relative Strength: Minervini states that real leaders do better than the wider market. ANAB has a ChartMill Relative Strength (CRS) score of 97.29, meaning it has done better than about 97% of all stocks over the past year. This outstanding relative strength is a sign of the market leadership the strategy looks for.
This technical view indicates the stock is being bought and is in a clear bullish stage, which is the necessary first step in the Minervini process. A stock missing any of these points would be left out, no matter its fundamental story.
Fundamental Improvement: The Driver for High Growth
While the Trend Template finds the "how" of a stock's price move, Minervini's strategy looks into the "why" through fundamental study. The idea is that the largest stock winners are nearly always backed by sharp gains in a company's financial results. The scan that found ANAB specifically searched for a high Growth Momentum (HGM) score, which looks for speeding growth trends. ANAB's recent financial numbers show several fast growth signs:
- Earnings Movement: The company has shown a notable change to profitability. The latest quarterly EPS grew by over 145% year-over-year. Maybe more key, analysts are greatly raising their future forecasts, with the average EPS guess for the next year moved up by more than 73% in the last three months alone.
- Revenue Jumps: Top-line growth is very strong. Quarterly revenue growth is over 150% year-over-year, and the company has passed revenue guesses in each of the last four quarters by an average of over 246%. Full-year revenue growth recently was 432%.
- Positive Profitability Change: After times of losses common for clinical-stage biotechs, ANAB has recently reported a positive profit margin of nearly 20% in its last quarter, showing a key turning point toward lasting operations.
This pairing of climbing revenues, a quick move to profitability, and very positive analyst changes creates the fundamental "catalyst" that Minervini's SEPA (Specific Entry Point Analysis) framework looks for. It gives a fundamental reason for the technical breakout, suggesting the price health may be more than just speculative.
Present Technical Condition and Pattern
According to ChartMill's own analysis, ANAB presently holds a strong Technical Rating of 9 out of 10, confirming its healthy upward move. The long-term trend is scored as positive, and the stock does better than 90% of its peers in the Biotechnology industry. The analysis notes the stock is trading in the higher part of its 52-week range, though it has moved sideways in a wide band over the past month after its notable rise.
The Setup Rating is a 6, showing a possible consolidation area. The technical report finds a clear support area between $44.14 and $44.66, which could act as a sensible place for a stop-loss order, with resistance seen near $46.02. This pattern of rising, then consolidating, is common of healthy upward moves and can give a planned chance for entry if the stock continues its upward movement.
A detailed look at the support, resistance, and trade pattern can be found in the full ChartMill Technical Report for ANAB.
Conclusion
ANAPTYSBIO INC shows a case where a strict, rules-based scanning process finds a stock that fits a particular high-growth, momentum-focused investment view. It shows the agreement Minervini's strategy looks for: a strong technical upward move confirmed by the Trend Template, driven by fast fundamental improvement in revenues, earnings, and analyst opinion. For investors centered on high-growth momentum, ANAB stands for the kind of candidate that passes multiple filters for both price action and business results.
This stock was found using a paired "High Growth Momentum + Trend Template" scan. Investors can use the link to this set scan to see ANAB and find other possible candidates that meet these specific points.
Disclaimer: This article is for information and learning only. It is not meant as investment advice, a suggestion, or an offer to buy or sell any security. The analysis is based on given data and certain scanning methods; past results are not a guide for future results. Investors should do their own research, think about their financial position and risk comfort, and talk with a qualified financial advisor before making any investment choices.
