Does CIA CERVECERIAS UNI-SPON ADR (NYSE:CCU) meet the Minervini criteria?

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

Does CCU pass the Minervini Trend Template check?

CCU checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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 CCU may be interesting for high growth investors.

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. CCU boasts a 5 out of 10:

Earnings Momentum

• The earnings per share (EPS) of CCU have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 77.7% increase. This reflects the company's ability to improve its profitability over time.
• Over the past year, CCU has demonstrated 52.37% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• CCU has experienced 69.06% q2q revenue growth, indicating a significant sales increase.
• Accelerating Sales growth for CCU: the current Q2Q growth of 69.06% exceeds the previous quarter Q2Q growth of -3.04%.
• Sales growth accelerated for 2 quarters in a row.
• The average next Quarter EPS Estimate for CCU has experienced a 25.87% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, CCU showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Financial Strength & Profitability

• The profit margin of CCU has seen steady growth over the past year, signaling improved profitability.
• CCU exhibits a strong Return on Equity (ROE) of 10.55%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a Debt/Equity ratio of 0.84, CCU appears to have a manageable debt load relative to its assets.

Strong Market Performance

• The Relative Strength (RS) of CCU has been consistently solid, with a current 91.93 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

Why is CCU a setup?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, CCU has a 7 as its setup rating:

Besides having an excellent technical rating, CCU also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. Another positive sign is the recent Pocket Pivot signal.

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

More like this

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.