Investors looking to find promising growth chances often use a two-part method, joining careful fundamental study with exact technical timing. One plan looks for stocks that show good basic business growth, marked by speeding revenues and earnings, while also showing helpful technical shapes that point to a possible breakout. This way tries to find companies with good future outlooks just as market movement starts to match their basic story. The aim is to find securities where better financial health and profit give a base, and a good chart setup gives a possible entry sign.
APELLIS PHARMACEUTICALS INC (NASDAQ:APLS) recently came from a screen made to find just this mix. As a commercial-stage biopharmaceutical company working on new treatments for diseases with high unmet need, Apellis works in a field where growth chance is very important. The company’s main product, SYFOVRE for geographic atrophy, has led to a large commercial ramp-up, putting it clearly in the growth stock group where future earnings chance is a main part of valuation.
Fundamental Growth Profile
The basic case for APELLIS PHARMACEUTICALS INC depends on its notable growth measures, which are key for any growth investing plan. According to its fundamental analysis report, the company gets a Growth Rating of 7 out of 10, showing results well above the industry average. This score is backed by very fast recent financial results and good future hopes.
- Very Fast Past Growth: Over the last year, Apellis reported a 116.4% jump in Earnings Per Share (EPS) and a 42.1% rise in Revenue. This shows the successful early selling of its main product.
- Good Forward Estimates: Analysts see continued solid growth, with an expected average yearly EPS growth of almost 27% and Revenue growth of almost 14% over the next years.
- Profitability Becoming Positive: After years of investment-focused losses, the company has recently changed. Its Profit Margin of 4.43% and Operating Margin of 7.91% now rank better than about 90% of its biotechnology industry peers, giving it a Profitability Rating of 5.
While the company’s financial health, rated a 5, shows some points to watch, such as a high debt load compared to equity, its cash position is good with a Current Ratio of 3.54. For a growth stock in the biotech field, this mix of fast growth, new profitability, and enough cash forms an interesting basic picture. The valuation, also rated a 5, seems fair within its high-growth industry setting, especially when noting its Price-to-Free-Cash-Flow ratio is lower than over 93% of its peers.
Technical Setup and Breakout Chance
A good growth story alone is not enough for the joined plan; the stock must also show a technical shape that points to readiness for a price rise. The technical analysis report for APLS gives a Setup Rating of 7, pointing out a "decent setup pattern" after a time of consolidation.
- Consolidation Inside a Range: Over the last month, the stock has traded between about $23.54 and $26.24. This consolidation comes after a large rally over the past six months and can be seen as a pause that may restart the upward trend.
- Key Resistance and Support Levels: The technical report notes a clear resistance area between $25.77 and $25.86, made by a mix of trendlines. A clear move above this area could signal the next step higher. On the other hand, a support area exists around $23.79 to $23.93, giving a possible place for a stop-loss order if the breakout does not work.
- Market Setting: While the long-term trend for APLS stays positive, its short-term trend is neutral as it consolidates. This place just below a set resistance level is exactly the kind of chart pattern growth investors look for to time an entry, trying to benefit from a possible movement change that matches the positive basics.
Why This Mix Is Important
The link between fundamental growth and technical setup is the center of this investment screening idea. A good growth profile makes sure the company has the chance for increasing earnings, which is the final cause of long-term stock gain. However, even the best basics can be missed by the market for some time. A positive technical setup, like a consolidation near resistance, acts as a possible sign that market players are starting to see this value and that buying pressure may be building. This joining aims to lower timing risk by finding stocks where the basic story is being confirmed by price action.
For investors wanting to look at other companies that fit this exact blend of good growth basics and hopeful technical patterns, more study can be done. You can find more results from this "Strong Growth Stocks with good Technical Setup Ratings" screen by clicking here.
Disclaimer: This article is for information only and does not make financial advice, a suggestion, or an offer or request to buy or sell any securities. The information given is based on data provided and should not be the only base for any investment choice. Investing includes risk, including the possible loss of principal. Always do your own study and think about talking with a qualified financial advisor before making any investment choices.
