ARCUTIS BIOTHERAPEUTICS INC (NASDAQ:ARQT) Combines Strong Trend with High-Growth Momentum

The method used in this study joins Mark Minervini's strict Trend Template with an emphasis on high-growth momentum investment. Minervini's approach is based on finding stocks in strong upward trends, verified by particular moving average arrangements, closeness to new peaks, and better relative performance. This technical base is then combined with fundamental examination, looking for firms showing very strong growth in earnings and sales, positive earnings surprises, and rising analyst estimates. The aim is to find securities where good technical condition meets speeding up business basics, presenting a possibly good risk/reward situation.

A Good Technical Base

ARCUTIS BIOTHERAPEUTICS INC (NASDAQ:ARQT) shows a convincing technical image that matches the Minervini Trend Template closely. The template is made to filter for stocks in a clear Stage 2 uptrend, and ARQT meets this important standard.

• Trending Moving Averages: The stock's price of $24.23 trades well above its main moving averages, the 50-day ($19.80), 150-day ($16.19), and 200-day ($15.70). Also, all these averages are in rising patterns, with the 50-day above the 150-day and 200-day, confirming a strong and set uptrend across several time periods.
• Closeness to Highs: ARQT is now trading within 11% of its 52-week high of $27.08 and is a notable 172% above its 52-week low of $8.90. Minervini’s method stresses buying strength, not weakness, and stocks close to new highs often have the momentum to keep rising.
• Better Relative Performance: With a ChartMill Relative Strength (CRS) rating of 96.57, ARQT is doing better than almost 97% of all stocks in the market. This leading trait is a key part of the method, as market leaders often lead rallies and give larger returns.

Notable High-Growth Momentum

Beyond a clean chart, ARQT shows the type of strong fundamental growth that high-growth investors look for. The company's financial numbers show clear speeding up.

• Outstanding Sales Growth: The company is seeing a major revenue increase. Trailing twelve-month (TTM) revenue growth is at 129%, and newer quarterly numbers are even more notable, with the last quarter showing year-over-year sales growth of over 121%. This shows good market acceptance for its products.
• Quickly Getting Better Profitability: Maybe even more convincing is the direction in earnings. The EPS growth on a TTM basis is 80%, but the newest quarter saw EPS jump 118% compared to the same quarter last year. The company has exceeded EPS estimates in each of the last four quarters, with an average surprise of 62%. This series of positive surprises often draws institutional interest and can be a strong catalyst for the stock.
• Positive Analyst View: The growth story is being acknowledged on Wall Street. Analyst estimates for next year's earnings have been moved up by 63% over the last three months, showing increasing belief in the company's future profitability. In the same way, revenue estimates for next year have been increased by 14%.

Technical Condition Summary

The given technical report gives ARQT a top rating of 10 out of 10, showing its outstanding technical condition. The summary states that ARQT is a "steady performer" with both short-term and long-term trends rated as positive. It is trading in the higher part of its 52-week range and is seen as a leader within the competitive Biotechnology industry, doing better than 92% of its peers. While the stock's strong trend is clear, the report does state that the present setup quality is lower, suggesting the price movement has been unsteady and that investors may wish to wait for a time of consolidation to find a more suitable, lower-risk entry point. For a detailed look at support and resistance levels, you can check the full technical analysis report for ARQT.

Locating Comparable Chances

ARCUTIS BIOTHERAPEUTICS INC presents a case where a good Minervini-style technical setup is backed by solid high-growth basics. For investors looking to systematically find other stocks that meet this strong mix of criteria, the High Growth Momentum + Trend Template screen can be a useful tool for continued study.

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