EXELIXIS INC (NASDAQ:EXEL) – A Strong Contender in High-Growth Oncology Stocks

EXELIXIS INC (NASDAQ:EXEL) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template strategy. The company, focused on developing oncology treatments, demonstrates strong technical and fundamental characteristics that make it a compelling candidate for growth-oriented investors.

Why EXEL Fits the Minervini Trend Template

The Minervini Trend Template is designed to identify stocks in strong uptrends with favorable risk/reward setups. EXEL meets all key criteria:

• Price Above Key Moving Averages:

  • Current price ($44.47) is above the 50-day ($42.79), 150-day ($38.07), and 200-day ($36.49) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.

• Upward-Trending Moving Averages:

  • The 150-day and 200-day MAs are rising, reinforcing long-term strength.

• Strong Relative Strength:

  • EXEL’s relative strength (CRS) is 92.98, meaning it outperforms nearly 93% of all stocks.

• Price Near 52-Week High:

  • The stock is trading within 10% of its 52-week high ($49.62), a sign of sustained momentum.

• Volatility Contraction Pattern (VCP):

  • The stock has consolidated recently, reducing volatility and setting up a potential breakout.

High-Growth Fundamentals

EXEL’s financials support its high-growth momentum rating:

• Earnings Growth:

  • EPS (TTM) grew 205.6% year-over-year.
  • Quarterly EPS growth surged 175% in the most recent quarter.

• Revenue Growth:

  • Revenue (TTM) increased 24.5% YoY.
  • Quarterly sales grew 30.6% compared to the same quarter last year.

• Profitability Improvements:

  • Profit margins expanded to 28.7% in the latest quarter, up from 24.7% in the prior quarter.
  • Free cash flow per share grew 209.5% YoY.

• Analyst Upgrades:

  • EPS estimates for next year have been revised upward by 12.2% over the past three months.

Technical Outlook

According to ChartMill’s technical report, EXEL has a perfect 10/10 technical rating, indicating strong momentum across short and long-term timeframes. Key observations:

• Support Levels: Strong support exists between $42.19 - $43.22, providing a solid floor for pullbacks.
• Resistance Zone: A breakout above $46.16 - $46.27 could signal further upside.
• Setup Quality: The stock scores an 8/10 on setup quality, suggesting a favorable entry point with controlled risk.

For a deeper technical breakdown, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more high-growth stocks that meet Minervini’s criteria.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.