GRIFOLS SA-ADR (NASDAQ:GRFS) Screens as High-Growth Momentum Stock with Strong Technicals

GRIFOLS SA-ADR (NASDAQ:GRFS) has recently appeared through a screening process that joins Mark Minervini’s Trend Template with a High Growth Momentum (HGM) rating. This two-part method finds stocks that not only show strong technical momentum but also display solid fundamental growth traits. The plan is based on Minervini’s system, which stresses the need for stocks to be in a definite uptrend, confirmed by moving averages and relative strength, while also producing speeding earnings and revenue growth. For growth investors, this mix can point to possible leaders set for more gains.

GRIFOLS works in the biotechnology field, focusing on plasma-derived medicines and diagnostic tools. The company’s current results show it fits well with the Minervini Trend Template, a group of technical measures made to spot stocks in clear uptrends.

Technical Fit with Minervini’s Trend Template

• Price Above Key Moving Averages: GRFS is trading above its 50-day ($9.73), 150-day ($8.27), and 200-day ($8.22) simple moving averages. This multi-level position shows continued positive momentum across short, medium, and long-term periods, a central need in Minervini’s system for verifying a stock is in Stage 2 progress.
• Moving Average Trends: The 200-day moving average has been moving up, supporting the force of the long-term trend. The 50-day moving average is also above both the 150-day and 200-day averages, indicating maintained speed and agreement of momentum, a main part of Minervini’s template to prevent conflicting signs across different time frames.
• Proximity to Highs: With a present price of $10.15, GRFS is trading within 25% of its 52-week high of $11.14, meeting Minervini’s rule that stocks should be close to their highs to confirm leadership and momentum. Also, the stock is trading 64% above its 52-week low of $6.19, well above the 30% limit Minervini uses to guarantee significant recovery and force.
• Relative Strength: GRFS shows a relative strength ranking of 84.07, meaning it is doing better than 84% of all stocks. This is above Minervini’s lowest need of 70 and implies strong market leadership, especially within the biotechnology industry where it does better than 75% of similar companies.

Fundamental Growth Measures

From a growth view, GRIFOLS shows several positive fundamental features that fit with high-growth investing:

• Earnings Growth: The company has shown notable gain in profitability. EPS growth on a trailing twelve-month (TTM) basis jumped by 110.19%, while the newest quarter showed a huge 760.5% year-over-year rise in earnings. Sequential speeding is also clear, with earlier quarters showing growth of 192.67% and 26.88%, meaning that earnings momentum is not only strong but speeding up, a key point for growth investors looking for companies with growing profitability.
• Revenue Expansion: Revenue growth has been firm, with TTM revenue up 9.32% and the latest quarter jumping 102.26% compared to the same time last year. This top-line growth, joined with expanding earnings, implies the company is effectively scaling its activities while bettering margins.
• Margin Improvement: Profit margins have widened significantly, with the last quarter reporting a 6.19% net profit margin, up from 3.34% in the previous quarter and 2.88% three quarters ago. This upward path in margins shows better operational efficiency and pricing ability, which are important for maintaining high growth rates and profitability over time.
• Free Cash Flow Growth: Free cash flow per share has grown by 239.24% over the past year, reaching $1.19. Firm free cash flow production backs more investment in growth projects, debt decrease, or possible shareholder returns, adding a level of financial steadiness to the growth story.

High Growth Momentum (HGM) Rating

The screen needed a lowest HGM rating of 4, and GRFS’s fundamental results, especially its explosive earnings growth, bettering margins, and firm cash flow, support a positive growth rating. The HGM rating system highlights these areas to find companies that are not only growing quickly but also doing so with bettering financial condition.

Technical Summary

According to ChartMill’s technical report, GRFS has a technical rating of 8 out of 10, reflecting its firm uptrend and market leadership. The long-term trend is good, and the stock is trading in the upper part of its 52-week range. However, the setup rating is now 3, meaning that while the stock is technically solid, it may not be in a perfect consolidation phase for a new entry. For more detailed study, see the full technical report here.

Find Similar Opportunities

For investors curious about finding other stocks that meet this strict mix of technical and growth rules, more results can be found using the High Growth Momentum + Trend Template screen.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.