ARGENX SE - ADR (NASDAQ:ARGX) Ticks Key Boxes for Growth Investors Using Navellier's 'Little Book' Strategy

Growth investing strategies often rely on identifying companies showing strong financial momentum and operational quality. One systematic method for finding these opportunities comes from Louis Navellier’s "The Little Book That Makes You Rich," which presents eight basic rules for choosing leading growth stocks. These criteria focus on earnings revisions, surprises, sales and earnings growth, margin improvement, cash flow, earnings momentum, and high returns on equity. The method intends to find firms that are not only expanding quickly but also enhancing their basic business quality, a mix that has historically linked with stock outperformance.

In the group of names currently fitting this strict screen is argenx SE - ADR (NASDAQ:ARGX), a global immunology company committed to creating antibody therapeutics for severe autoimmune diseases. The company displays several traits that fit closely with Navellier’s growth investing rules.

• Positive Earnings Revisions and Surprises: Analyst optimism is a main signal in growth investing, and ARGX shows solid upward revisions, with next-quarter EPS estimates increased by nearly 56% over the past three months. Also, the company has provided an average earnings surprise of over 3,962% across its last four quarterly reports, exceeding expectations consistently, a sign of companies that handle operational execution effectively and frequently lead to more estimate upgrades.

• Accelerating Growth Metrics: Sales growth is vital for expansion, and ARGX shows strong momentum with quarterly revenue growth of 97.6% and yearly growth of 56.8%. More significantly, earnings growth is even more notable, with EPS increasing 345.5% year-over-year and an impressive 731.1% quarter-over-quarter. This quickening in profitability is exactly what the strategy looks for, it shows not just growth, but better quality and scalability of that growth.

• Margin Improvement and Cash Flow: A main separator between good and great growth companies is the skill to change top-line growth into bottom-line results. ARGX’s operating margin increased 168.2% over the past year, showing better cost control and operating efficiency. At the same time, free cash flow rose 140.7%, giving the company financial room to put money back into innovation or handle market changes, both benefits noted in Navellier’s structure.

• High Return on Equity: With an ROE of 21%, ARGX is in the group of top performers in its industry. High ROE is a sign of efficient capital use and good profitability relative to shareholder investment, making it a key part of the “Little Book” screen. It implies that the company is not just expanding, but creating significant value in the process.

A review of the full fundamental analysis report gives more background to these numbers. ARGX gets a good fundamental rating of 6 out of 10, with especially high scores in growth and health. Its profitability, though rated medium, is backed by industry-leading margins and returns on capital. The company’s valuation shows a mixed view, while classic P/E ratios seem high, growth-adjusted measures and comparisons to sector peers imply the stock may not be overpriced relative to its potential.

It is important to note that the screen and the basic strategy are made to find companies with good recent momentum instead of proven long-term histories. This makes it especially fitting for investors looking for new growth stories, though it needs constant watching to make sure growth paths stay in place.

For investors wanting to look into other companies that currently pass the “Little Book” screen, a full list of results is available here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their financial situation and risk tolerance before making investment decisions.