Arcutis Biotherapeutics Inc (NASDAQ:ARQT) Fits the Minervini Trend Template with Strong Growth Momentum

Spotting High-Growth Stocks Using the Minervini Trend Template

Mark Minervini’s Trend Template is a structured method for finding stocks in strong upward trends, blending technical and fundamental factors to select promising options. The approach highlights stocks with solid price movement, strong performance compared to others, and alignment with important moving averages. Also, for those focused on growth, the High Growth Momentum (HGM) rating helps locate firms with fast-improving earnings and revenue—a sign of leading market players.

One stock that meets these dual standards is Arcutis Biotherapeutics Inc (NASDAQ:ARQT), a biopharmaceutical firm specializing in skin-related treatments. Next, we explore why ARQT fits Minervini’s approach and why it might interest growth-focused investors.

Why ARQT Fits the Minervini Trend Template

Minervini’s Trend Template demands stocks meet several technical conditions to confirm a strong upward trend. Here’s how ARQT measures up:

1. Moving Average Alignment

• Price Above Key MAs: ARQT’s current price ($15.63) is higher than its 50-day ($14.37), 150-day ($14.17), and 200-day ($13.55) moving averages—a positive sign.
• Rising MAs: The 150-day and 200-day MAs are moving upward, showing long-term stability.
• Golden Cross: The 50-day MA is above both the 150-day and 200-day MAs, signaling faster momentum.

2. Price Compared to 52-Week Range

• 30% Above 52-Week Low: ARQT is trading 84% above its 52-week low ($8.03), indicating strong rebound potential.
• Within 25% of 52-Week High: At $15.63, it is 12% below its 52-week high ($17.75), suggesting further growth room.

3. Strong Performance Compared to Others

• ARQT’s relative strength (RS) score of 91.71 means it beats nearly 92% of all stocks—a key feature of top performers.

These factors confirm ARQT is in a clear Stage 2 upward trend, a central part of Minervini’s strategy.

High Growth Momentum: Fast-Improving Earnings and Revenue

Beyond technicals, Minervini stresses fast-improving financials—companies with quick earnings and sales growth. ARQT’s numbers show strong progress:

Earnings Growth

• EPS Growth (Q2Q): +69% in the latest quarter, with earlier quarters showing 37.5%, 87.5%, and 54.8% growth.
• Annual EPS Growth (TTM): +65.75%, reflecting steady gains.
• Earnings Surprises: ARQT has exceeded EPS estimates in all of the last four quarters by an average of 28.5%.

Revenue Growth

• Sales Growth (Q2Q): +164% in the latest quarter, with past quarters up 32.8%, 427.6%, and 17.4%.
• Annual Revenue Growth (TTM): +99.5%, showing strong demand for its skin treatments.

Such growth aligns with Minervini’s focus on firms with fast-improving financials, often leading to further price gains.

Technical View: Stable but Pausing

According to ChartMill’s technical report, ARQT scores a 9/10 on technical health, with a 6/10 setup rating, suggesting a decent pause in movement. Key points:

• Support Levels: Strong support at $15.50 (trendline) and $14.11-$14.79 (moving averages).
• Recent Performance: Up 84% over the past year, with a 22.3% gain in the last six months.
• Volume Trends: Higher-than-usual volume lately points to institutional interest.

While ARQT isn’t at a breakout yet, its pause near highs and strong financials make it worth watching.

Where to Find More Fast-Growth Stocks

For investors looking for similar fast-growth, technically sound stocks, our High Growth Momentum + Trend Template Screen offers a selected list of stocks meeting these standards.

Closing Notes

ARQT is a prime example of a stock that fits Minervini’s Trend Template while also showing the earnings and revenue growth valued by growth investors. While no pick is risk-free, its solid technicals, strong performance compared to others, and fast-improving financials make it a noteworthy option for deeper review.

Disclaimer: This is not investment advice. Our content is for informational and educational purposes only. Please read our full disclaimer before making any investment decisions.