Investors looking for high-growth prospects often mix detailed technical study with fundamental momentum filters to find stocks set for further gains. The method used in this case joins Mark Minervini's Trend Template, which finds securities in clear uptrends, with a High Growth Momentum (HGM) rating that points out companies with solid and improving earnings and sales growth. This combined process confirms that prospects are not only technically healthy but also fundamentally strong, focusing on stocks that are industry front-runners with notable growth paths.
Technical Health and Trend Agreement
Halozyme Therapeutics Inc (NASDAQ:HALO) displays a strong technical picture that matches the needs of the Minervini Trend Template. This template is made to sort for stocks showing clear, multi-timeframe uptrends, a trait of market front-runners.
Important technical points and how HALO fits them are:
- Price Above Important Moving Averages: The stock trades notably higher than its increasing 150-day ($63.00) and 200-day ($62.25) simple moving averages (SMAs), verifying a positive long-term direction.
- Moving Average Order: The 50-day SMA ($70.37) is located higher than both the 150-day and 200-day SMAs, showing positive order across short and long-term periods.
- Nearness to Highs: With a present price of $71.19, HALO is trading less than 25% from its 52-week high of $79.50 and is over 30% higher than its 52-week low of $42.01, concentrating on strength instead of value searching.
- Strong Relative Performance: The stock has a ChartMill Relative Strength (CRS) rating of 88.75, meaning it is performing better than almost 89% of all stocks. High relative performance is a central part of the Minervini method, as it finds sector and market front-runners that often lead upward moves.
This unified technical view indicates the stock is in a clear Stage 2 advance, the main phase the Trend Template focuses on for its ability to provide major price gains.
Fundamentals Fueling High Growth Momentum
Apart from its technical strengths, HALO shows the potent fundamental momentum desired by growth investors. The company's financial results show the type of improving growth that frequently comes before large price movements, a central idea of Minervini's Specific Entry Point Analysis (SEPA).
The fundamental information shows a trend of solid and improving growth:
- Strong Earnings Increase: Earnings per Share (TTM) are at $5.63, with a year-over-year growth figure of 48.5%. Importantly, this growth has been steady, with the last four quarters showing EPS growth figures of 35.4%, 69.2%, 40.5%, and 53.7% in order. The company has also exceeded EPS predictions in all of the last four quarters by a typical amount of 11.1%.
- Notable Sales Growth: Revenue growth (TTM) is 31.2%, showing solid top-line increase to go with its bottom-line results. Like earnings, recent quarterly sales growth has been solid at 22.1%, 40.8%, 35.2%, and 29.5%.
- Analyst Optimism: The forecast stays positive, with analysts increasing their next-year EPS predictions by almost 12% in the last three months. Such positive changes are a solid sign of future fundamental health.
- High and Improving Profitability: The company's profit margin was a notable 49.5% in the last quarter, highlighting its capacity to turn revenue effectively into earnings. This margin has gotten better from 44.6% two quarters ago, showing operational effectiveness.
These measurements together create a picture of a company not only growing, but doing so at a quickening rate with high profitability—a standard profile for a high-growth momentum stock.
Technical Study Summary
The detailed technical report for HALO gives the stock a high score of 9 out of 10, reflecting its outstanding technical condition. The study states that both short-term and long-term directions are positive, and the stock's behavior is uniform and stable compared to the general market. While the setup score is a middle 5, meaning the stock is not in a tight consolidation pattern right now, the total technical health is clear. The report finds several important support levels under the present price, which can act as sensible zones for risk control.
For a full look at the technical situation, including specific support and resistance points, you can examine the full technical analysis report for HALO.
Locating Comparable Prospects
Halozyme Therapeutics offers a strong example of a stock that meets both detailed technical trend standards and solid fundamental growth measures. For investors wanting to find other businesses that match this high-growth, strong-trend description, this High Growth Momentum + Trend Template screen can be used to create a new list of possible options.
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