MITSUBISHI UFJ FINL-SPON ADR (NYSE:MUFG) – A Strong Technical and Growth Candidate

Mitsubishi UFJ Financial Group (NYSE:MUFG) has been identified as a potential candidate for investors following Mark Minervini’s trend-following strategy, while also meeting high-growth momentum criteria. The stock exhibits strong technical characteristics and improving fundamentals, making it worth a closer look.

Why MUFG Fits the Minervini Trend Template

The Minervini Trend Template focuses on stocks with strong upward momentum, confirmed by moving averages and relative strength. MUFG meets several key criteria:

• Price Above Key Moving Averages: The stock is trading above its 50-day ($12.77), 150-day ($12.12), and 200-day ($11.66) moving averages, indicating a bullish trend.
• Rising Moving Averages: Both the 150-day and 200-day moving averages are trending upward, reinforcing long-term strength.
• Relative Strength: With a ChartMill Relative Strength (CRS) score of 89.5, MUFG outperforms nearly 90% of stocks, a key factor in Minervini’s strategy.
• Price Near 52-Week High: The stock is currently trading at $13.20, within 12% of its 52-week high ($15.03), a sign of sustained momentum.

High Growth Momentum Considerations

Beyond technical strength, MUFG shows promising growth metrics:

• Earnings Growth: Quarterly EPS growth stands at 36.3%, with a strong beat rate—analysts underestimated earnings in all of the last four quarters by an average of 29.1%.
• Revenue Expansion: Sales grew 20.2% year-over-year in the latest quarter, with revenue revisions for the next year increasing by 7.6%.
• Profit Margins: The latest quarter saw a profit margin of 34.8%, up from 27.8% in the prior quarter, indicating improving efficiency.

Technical Outlook

According to ChartMill’s technical report, MUFG scores a perfect 10 out of 10 on technical health, with both short-term and long-term trends positive. However, the setup rating is currently 3 out of 10, suggesting the stock may be extended in the near term. Investors may want to wait for a pullback or consolidation before entering.

For a deeper dive into MUFG’s technicals, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investment advice. The observations are based on current data, but investors should conduct their own analysis before making decisions.