For investors looking to join solid fundamental momentum with well-timed technical entry signals, a multi-layered screening method can be very useful. One approach is to select stocks showing three main traits: a high ChartMill Technical Rating (TA Rating) to verify a strong uptrend, a high ChartMill Setup Rating to find a good consolidation pattern ready for a move higher, and a firm ChartMill High Growth Momentum (HGM) Rating to confirm the company is displaying forceful and speeding earnings and sales growth. This method tries to find companies that are not only improving fundamentally but are also set up technically for a possible further rise. ANAPTYSBIO INC (NASDAQ:ANAB) results from this filter, offering a strong example for high-growth momentum investors.
Fundamental Growth Momentum
The center of the high-growth momentum method is finding companies with very fast and often speeding financial results. AnaptysBio’s HGM Rating of 7 shows notable force across several important growth measures, which are the exact factors the rating is made to measure.
- Very Fast Revenue Growth: The company's top-line increase is exceptional. Trailing twelve-month revenue has increased by 196.4% year-over-year. More notably, recent quarterly sales growth shows high speed, with the last quarter rising 154.3% compared to the same period a year before.
- Fast EPS Improvement: While the company is not yet regularly profitable on a net income basis, the direction in earnings per share is strongly positive. The most recent quarter saw EPS increase by 145.6% year-over-year, a clear signal of bettering operational efficiency and financial condition.
- Positive Analyst Revisions: Future-focused confidence is a main part of the HGM Rating. Analysts have meaningfully lifted their estimates for AnaptysBio, with the average EPS estimate for the next fiscal year adjusted higher by 73.4% over the last three months. This shows increasing positive feeling about the company's short-term profit possibility.
- Regular Earnings Surprises: The company has exceeded consensus EPS estimates in three of the last four quarters, with an average exceedance of 51.6%. This record of beating forecasts builds trust and can be a reason for more positive movement.
This mix of strong actual growth, solid forward estimates, and positive surprises is exactly what the HGM Rating aims to measure, making ANAB a notable choice for growth-oriented investors.
Technical Strength and Trend
A solid growth narrative must be supported by price movement. AnaptysBio’s technical picture is very strong, receiving a complete ChartMill Technical Rating of 10. This rating brings together multiple elements to judge the stock's trend quality, and ANAB scores well in every area.
- Forceful Uptrend: Both the short-term and long-term trends are graded as positive. The stock is trading notably above its important moving averages (50-day, 100-day, and 200-day), which are all in upward arrangements, confirming a continued bullish trend.
- Market and Sector Outperformance: The stock shows impressive relative force, doing better than 97% of all stocks in the market over the past year and 90% of its group in the Biotechnology field. This outperformance is a sign of stocks with a high TA Rating.
- Solid Price Performance: With a 12-month return of about 181% and a 6-month increase of almost 76%, the price action factually supports the bullish technical evaluation.
High-Quality Setup Pattern
A complete technical rating alone does not always give a best entry signal; a stock can be overbought. This is where the Setup Rating of 7 becomes important. It checks if the stock is making a consolidation inside its uptrend, giving a possible lower-risk entry area.
According to the full ChartMill Technical Analysis report, ANAB is showing a good setup pattern. The report states that prices have been moving in a range between about $42.00 and $52.47 over the last month, with recent activity stabilizing in the middle of this range. This consolidation has helped lower instability and lets the stock absorb its recent increases. The analysis finds a clear support area below the current price (around $47.16) and notes almost no direct resistance above, indicating a possible route for a move higher. For a trader, this setup allows for setting a clear entry point above the consolidation and a reasonable stop-loss level below the found support.
Conclusion
AnaptysBio shows a meeting of the standards wanted by growth and momentum investors. Fundamentally, it shows the very fast revenue growth, sharp EPS betterment, and positive analyst feeling measured by a solid HGM Rating. Technically, it is a market leader in a forceful uptrend, as shown by its top-level TA Rating. Importantly, it is not just overbought; it is currently making a positive consolidation, giving a specified setup for possible entry as noted by its Setup Rating. This group of three ratings indicates ANAB is a company with solid movement that is also technically set for its next possible step upward.
For investors wanting to find other stocks that fit this mix of high growth movement and positive technical setups, you can use the screen yourself through this link: High Growth Momentum Breakout Setups Screen.
,
Disclaimer: This article is for information only and does not form investment guidance, a suggestion, or an offer to buy or sell any security. The evaluation is based on data and instruments given by ChartMill, and past results are not a guide to future outcomes. Investors should do their own research and think about their personal financial position and risk willingness before making any investment choices.
