ARGENX SE - ADR (NASDAQ:ARGX) Shows Strong Growth Traits Matching Navellier's Criteria

Growth investors looking for systematic ways to choose stocks may find Louis Navellier's method in "The Little Book That Makes You Rich" useful. This system uses eight basic rules intended to find companies showing better growth traits using earnings momentum, operational effectiveness, and financial condition. The method concentrates on numerical data that point to quickening business results, offering a structure for finding possible investment chances before they are commonly known by the market.

Meeting the Growth Criteria

Argenx SE - ADR (NASDAQ:ARGX) shows good fit with Navellier's growth rules in several areas. The company's recent performance data point to quickening business momentum that satisfies the particular levels described in the method.

• Earnings Revisions and Surprises: Analyst EPS estimates for the next quarter have been adjusted higher by 26.1% over the last three months, showing increasing confidence in short-term performance. The company has beaten earnings forecasts in three of the past four quarters with an average surprise of 3,962%, showing a steady history of doing better than analyst estimates.

• Sales and Earnings Growth: Revenue growth continues to be solid with quarterly sales rising 97.6% year-over-year and trailing twelve-month revenue increasing 56.8%. EPS growth has been especially notable, with quarterly EPS jumping 731% year-over-year and TTM EPS increasing 345%. These quickening growth rates meet Navellier's need for increasing business momentum.

• Operational Efficiency: The company's operating margin has grown by 168% over the last year, pointing to better profitability as sales rise. This operational effect is a main part of the method, indicating the company is increasing revenue without matching cost rises.

• Financial Health and Returns: Free cash flow has increased 141% year-over-year, giving financial room to support future growth projects. The return on equity of 21% is much higher than the 10% minimum level, showing effective use of shareholder money.

Fundamental Assessment

The complete fundamental analysis report for argenx gives an overall rating of 6 out of 10, with especially good scores in growth (8/10) and health (7/10). The company shows outstanding profitability measures within its industry, including profit margins of 42% that do better than 98% of biotechnology companies. While valuation measures show a high P/E ratio of 88, this is viewed as acceptable compared to industry averages and is partly explained by projected earnings growth of 104% each year. The company keeps a good financial standing with little debt and significant cash, with current and quick ratios above 5 showing easy coverage of immediate debts.

Investment Considerations

The mix of quickening revenue growth, increasing margins, and outstanding earnings momentum places argenx as a candidate deserving more study for growth-focused plans. The company's work on creating antibody treatments for autoimmune diseases means involvement in an increasing market area with ongoing potential for new developments. While the valuation needs thoughtful review, the basic growth traits fit well with the systematic method described in Navellier's system.

For investors wanting to find other companies that satisfy these growth rules, the pre-configured screen built on Navellier's eight rules offers a beginning for more research.

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Disclaimer: This article presents factual information for educational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance does not guarantee future results.