The method used to find possible investment choices joins a strict technical structure with attention to fundamental growth speed. This process is guided by the ideas of well-known trader Mark Minervini, whose Trend Template is made to find stocks in solid, confirmed uptrends. The template applies a sequence of moving average arrangements and price levels to sort for securities showing clear institutional buying and market leadership. To add to this technical health, the filter applies a High Growth Momentum (HGM) rating, which measures a company's earnings and sales speed increase, profit margin direction, and analyst estimate changes. The aim is to locate companies where outstanding business results are being acknowledged and valued by the market, forming a strong mix of healthy price movement and basic fundamental speed.
A Healthy Technical Base: The Minervini Trend Template
ASCENDIS PHARMA A/S - ADR (NASDAQ:ASND) shows a notable technical view that matches the Minervini Trend Template rules. This template is important because it methodically finds stocks in a verified Stage 2 uptrend, steering clear of basing or falling stocks. ASND's chart displays the typical signs of a leading stock.
- Trend Arrangement: The stock is trading notably above its increasing 50-day ($211.43), 150-day ($198.11), and 200-day ($189.67) simple moving averages. Importantly, the 50-day SMA is above the 150-day SMA, which is above the 200-day SMA, forming the stacked, positive arrangement Minervini highlights. This formation points to continued buying across several time periods.
- Nearness to Highs: ASND is now trading at $238.80, only 0.35% from its 52-week high of $239.65. The template needs a stock to be within 25% of its high, and ASND's place at the upper limit shows notable health and an absence of overhead supply. Also, the present price is more than 102% above its 52-week low, meeting the need of being at least 30% above the low and showing a solid recovery or uptrend is already in place.
- Relative Performance: With a ChartMill Relative Strength (CRS) score of 92.34, ASND is doing better than over 92% of the whole market. High relative performance is a central part of the Minervini view, as it finds market leaders that often keep leading.
The Driver for the Movement: High Growth Momentum
A healthy chart is frequently a sign of a healthy business. The High Growth Momentum rating for ASND tries to measure the fundamental speed increase that can drive a stock upward. The given data shows several high-growth measures that support the stock's technical rise.
- High Revenue Growth: The most notable number is the trailing twelve-month (TTM) revenue growth of over 97%. More lately, sales growth for the last reported quarter jumped a remarkable 269% year-over-year. This kind of speed increase is a main driver that draws institutional investment, a force Minervini's method aims to benefit from.
- Getting Better Earnings Path: While the company is not yet profitable on a net basis, the earnings direction shows meaningful betterment. The EPS growth for the TTM period is about 48%, and the growth for the last reported quarter was around 42%. The direction over recent quarters has been positive, with earlier periods showing growth of 66% and 31%. This sequence of growing earnings, even from a loss, is a good signal of operational growth and a way toward profitability.
- Analyst Views and Changes: The filter includes analyst estimate changes, and here the data is mixed. While revenue estimates for the next year have seen a small negative change, earnings estimates for the next quarter are expected to grow by 93% year-over-year. The company has also surpassed revenue estimates in three of the last four quarters, with an average beat of over 13%, showing a record of exceeding views.
Technical Condition and Setup Review
A look at the given technical analysis report gives a combined view. ASND gets a complete Technical Rating of 10/10 from ChartMill, reflecting its outstanding trend health, market-leading relative performance, and place at new highs. The report states the long and short-term directions are both positive and that ASND is a top performer in the biotechnology field.
However, the report also gives a Setup Rating of 5/10. This shows that while the stock's technical condition is very good, its recent price movement has been unstable, making a perfect, low-risk entry point less obvious now. The stock is trading near the top of its recent range, suggesting investors should be careful and wait for a constructive pullback or period of stability, like a Minervini Volatility Contraction Pattern (VCP), to appear before thinking about a new entry. This detailed view shows that filtering finds candidates, but chart study decides timing. You can see the full technical review here: ASND Technical Analysis Report.
Locating Like Possibilities
ASND is a clear example of the kind of security this joined filter tries to find: a company with high fundamental growth that is being matched by solid, trend-confirming price movement. For investors wanting to use this method to locate other possible choices, the predefined filter is ready to use. You can see the "High Growth Momentum + Trend Template" filter here to look at the present results and rules.
Disclaimer: This article is for information and learning only. It is not investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and certain methods, but past results do not show future outcomes. Investors should do their own research and talk with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.
