Checking if DELCATH SYSTEMS INC (NASDAQ:DCTH) meets Minervini’s stock selection rules

In this article we will dive into DELCATH SYSTEMS INC (NASDAQ:DCTH) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DELCATH SYSTEMS INC showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Does DCTH 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 DCTH:

• ✔ 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 DCTH's High Growth Momentum Rating

ChartMill assigns a High Growth Momentum Rating (HGM) to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth and profitability elements, including EPS and revenue growth, accelleration, surprises and revisions. In the case of DCTH, the assigned 6 reflects its growth potential:

Earnings Momentum

• The EPS of DCTH has exhibited growth from one quarter to another (Q2Q), with a 107.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Accelerating EPS growth for DCTH: the current Q2Q growth of 107.0% exceeds the previous quarter Q2Q growth of 77.08%.
• DCTH has experienced 81.75% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• DCTH has experienced 530.0% q2q revenue growth, indicating a significant sales increase.
• With notable 1-year revenue growth of 2.0K%, DCTH exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• The average next Quarter EPS Estimate for DCTH has experienced a 118.0% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.

Financial Strength & Profitability

• DCTH has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• DCTH has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• DCTH maintains a healthy Debt-to-Equity ratio of 0.0. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.

Market Strength

• The Relative Strength (RS) of DCTH has been consistently solid, with a current 97.71 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How do we evaluate the setup for DCTH?

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. DCTH currently holds a 2 as its setup rating, suggesting a particular level of consolidation in the stock.

Although DCTH has an excellent technical rating, it does not present a decent entry opportunity at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation.

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

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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.