RIGEL PHARMACEUTICALS INC (NASDAQ:RIGL) Meets Minervini Trend Template and High-Growth Momentum Criteria

In the search for returns that exceed the market, many investors use systematic plans that join strict technical study with basic growth measures. One method, made famous by noted trader Mark Minervini, joins his specific Trend Template with an emphasis on strong-growth momentum. The aim is to find stocks that are both in solid, confirmed uptrends and supported by outstanding and quickening business foundations. This two-step process tries to catch leading stocks early in their large price gains, targeting stocks where firm price movement is supported by basic company health. A recent filter using this joined plan has identified RIGEL PHARMACEUTICALS INC (NASDAQ:RIGL) as a stock deserving more study.

Technical Base: Following the Minervini Trend Template

The Minervini Trend Template is made to filter for stocks showing standard bullish traits, making sure an investor only looks at securities in a verified Stage 2 uptrend. RIGL now shows a clear match with these technical requirements.

• Price Above Important Moving Averages: The stock's last price of $47.26 trades well above its rising 50-day ($34.25), 150-day ($28.38), and 200-day ($26.11) simple moving averages. This ordered position is a standard sign of continued bullish momentum across all main timeframes.
• Moving Average Order: The 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. This positive order confirms the force and structure of the uptrend.
• Nearness to Highs: A central idea of the Minervini view is to concentrate on strength, not low price. RIGL's price is within 10% of its 52-week high of $52.24 and stands 223% above its 52-week low of $14.63. This shows the stock is acting as a market leader, not a weak stock making a comeback.
• Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 93.77, RIGL is doing better than about 94% of all stocks in the market. High relative strength is a required filter in the Trend Template, as it finds the stocks pulling the most institutional money.

This technical view satisfies the "Trend" part of Minervini's SEPA (Specific Entry Point Analysis) method, giving a solid base from which more study can continue.

Fundamental Driver: Meeting Standards for Strong Growth Momentum

While a good chart is necessary, Minervini's plan gives similar importance to the fundamental "Catalyst", the fast growth in the basic business. The High Growth Momentum (HGM) score tries to capture this by grading companies on measures like earnings speed-up, sales growth, and profit margin improvement. RIGL's given data shows a fundamental picture that seems to support its strong price trend.

• Very Fast Earnings Growth: The company's earnings per share (EPS) growth is remarkable. Trailing twelve-month (TTM) EPS growth is over 4,300%, and recent quarterly comparisons show year-over-year rises of 108.6%, 5,566.7%, and 226% over the last three reported quarters. This sequence of large speed-up is a sign of companies going through a fundamental change point.
• Steady Earnings Surprises: RIGL has passed analyst EPS estimates in each of the last four quarters, with an average beat of 188.1%. This steady better-than-expected performance implies management action is surpassing expectations, often a main reason for continued institutional buying.
• Strong and Quickening Revenue: Top-line growth is also firm, with TTM revenue up 79.1%. Quarterly sales growth has been steadily positive and large, with the most recent quarter showing 25.6% growth, after quarters of 176% and 80.6% growth.
• Growing Profitability: Maybe most importantly, this sales growth is turning into greatly better bottom-line efficiency. The profit margin in the last reported quarter was 40.2%, a large gain from 21.5% and 24.9% in the two quarters before. This margin improvement shows operating leverage and pricing ability, key features of lasting high-growth companies.

This mix of quickening revenue, very fast earnings, and growing margins creates the fundamental "big earnings attract big attention" catalyst that Minervini names as vital for top performance.

Technical Condition and Present Situation Evaluation

According to ChartMill's own analysis, RIGL gets a high Technical Rating of 9 out of 10, showing its very good overall technical condition. The report states both short-term and long-term trends are positive, the stock is a leader in its biotechnology industry, and it trades near 52-week highs. However, the analysis also gives an important note of care for tactical entry: the Setup Quality Rating is a low 3.

This difference is informative. It confirms that while RIGL is technically very strong (meeting the Trend Template), its recent price movement has been changeable, making a low-risk, clear entry point hard to find now. The report proposes waiting for a time of settling to form. This matches the Minervini plan's focus on exact "Entry Points," often found inside volatility contraction patterns (VCPs), instead of buying after large moves.

For a full look at the support levels, trend study, and the complete reason for these ratings, you can see the full ChartMill Technical Report for RIGL.

Conclusion

RIGEL PHARMACEUTICALS INC shows a notable example of a stock that matches the ideas of a joined Minervini and high-growth momentum plan. It shows a close-to-standard following of the Trend Template, confirming a strong Stage 2 uptrend backed by better relative strength. Fundamentally, it shows the type of very fast, quickening growth in earnings and sales, joined with large margin improvement, that acts as the catalyst for major price changes. While the present technical situation suggests the stock may be stretched in the short term, calling for patience for a better entry, its basic picture makes it a main stock for watching on a list for high-growth investors.

Interested in finding other stocks that meet this strict mix of technical and fundamental standards? You can look at the live filter that found RIGL and find more possible stocks by going to the High Growth Momentum + Trend Template screener on ChartMill.

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Disclaimer: This article is for information and learning only. It is not meant as investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and shows the author's understanding. Investors should do their own research and talk with a qualified financial advisor before making any investment choices. Past results do not show future outcomes.