Would Mark Minervini consider KE HOLDINGS INC-ADR (NYSE:BEKE) a top stock pick?

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if KE HOLDINGS INC-ADR (NYSE:BEKE) is suited for growth investing. Investors should of course do their own research, but we spotted KE HOLDINGS INC-ADR showing up in our Minervini growth screen, so it may be worth spending some more time on it.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for BEKE:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Why BEKE may be interesting for high growth investors.

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. BEKE was assigned a score of 4 for growth:

Explosive Earnings Growth

• The EPS of BEKE has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• BEKE has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 26.8%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• The sales growth of BEKE is accelerating: the current Q2Q growth of 26.8% is above the previous quarter Q2Q growth of 19.95%. Sales momentum and acceleration are key for high growth systems.
• Sales acceleration happened 2 quarters in a row.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, BEKE showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• BEKE exhibits a favorable Debt-to-Equity ratio at 0.0. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.

Strong Market Performance

• BEKE has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 94.94 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. KE HOLDINGS INC-ADR is well-positioned for potential price growth opportunities.

How do we evaluate the setup for BEKE?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. BEKE scores a 4 out of 10:

Although BEKE has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

For an up to date full technical analysis you can check the technical report of BEKE

Final Thoughts

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.