Applying Mark Minervini’s growth stock checklist to BANCO SANTANDER-CHILE-ADR (NYSE:BSAC)

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

Does BSAC pass the Minervini Trend Template check?

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

• ✔ 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)

Unpacking BSAC's High Growth Momentum Rating

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. BSAC has achieved a 4 out of 10:

Earnings Momentum

• BSAC has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 90.0K% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• BSAC shows accelerating EPS growth: when comparing the current Q2Q growth of 90.0K% to the previous quarter Q2Q growth of 56.38%, we see the growth rate improving.
• BSAC has experienced 20.0K% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• BSAC has achieved significant quarter-to-quarter (Q2Q) revenue growth of 23.46%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.

Profitability & Financial Strength

• With a favorable trend in its free cash flow (FCF) over the past year, BSAC demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• With a favorable Return on Equity (ROE) of 17.97%, BSAC demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.

Strong Market Performance

• The Relative Strength (RS) of BSAC has been consistently solid, with a current 91.19 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How do we evaluate the setup for BSAC?

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. BSAC scores a 8 out of 10:

Besides having an excellent technical rating, BSAC also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 24.66. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 24.33, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Check the latest full technical report of BSAC for a complete technical analysis.

Concluding

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.