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:
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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.
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Upward-Trending Moving Averages:
- The 150-day and 200-day MAs are rising, reinforcing long-term strength.
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Strong Relative Strength:
- EXEL’s relative strength (CRS) is 92.98, meaning it outperforms nearly 93% of all stocks.
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Price Near 52-Week High:
- The stock is trading within 10% of its 52-week high ($49.62), a sign of sustained momentum.
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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:
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Earnings Growth:
- EPS (TTM) grew 205.6% year-over-year.
- Quarterly EPS growth surged 175% in the most recent quarter.
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Revenue Growth:
- Revenue (TTM) increased 24.5% YoY.
- Quarterly sales grew 30.6% compared to the same quarter last year.
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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.
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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.
