Would Mark Minervini consider METALPHA TECHNOLOGY HOLDING (NASDAQ:MATH) a top stock pick?

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

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for MATH:

• ✔ 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)

ChartMill's Evaluation of Growth

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. MATH has earned a 4:

Explosive Earnings Growth

• MATH has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 235.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• Over the past year, MATH has demonstrated 124.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The recent q2q revenue growth of 288.0% of MATH showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• With impressive 1-year revenue growth of 390.0%, MATH showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.

Financial Strength & Profitability

• MATH has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• MATH has a healthy Return on Equity(ROE) of 36.93%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• At a Debt/Equity ratio of 0.3, MATH seems well-positioned to sustain growth while keeping debt in check.

Market Strength

• MATH has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 87.71 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Why is MATH a setup?

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. MATH currently has a 3 as setup rating:

Although MATH has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our latest full technical report of MATH contains the most current technical analsysis.

More like this

It looks like METALPHA TECHNOLOGY HOLDING meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

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.