Would Mark Minervini consider SUPER GROUP SGHC LTD (NYSE:SGHC) a top stock pick?

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

Does SGHC pass the Minervini Trend Template check?

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

• ✔ 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)

Why SGHC may be interesting for high growth investors.

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. SGHC has achieved a 4 out of 10:

Explosive Earnings Growth

• The EPS of SGHC has exhibited growth from one quarter to another (Q2Q), with a 613.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• SGHC has achieved 167.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• The q2q revenue growth of 21.45% of SGHC highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.

Profitability & Financial Strength

• At a Debt/Equity ratio of 0.05, SGHC seems well-positioned to sustain growth while keeping debt in check.

Strong Market Performance

• The Relative Strength (RS) of SGHC has consistently been strong, with a current 97.67 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

How do we evaluate the setup for SGHC?

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for SGHC is 1:

Although SGHC has an excellent technical rating, it does not present a decent entry opportunity at the moment. Prices have been extended to the downside lately. For a nice entry it is better to wait for a consolidation.

Check the latest full technical report of SGHC for a complete technical analysis.

More like this

It looks like SUPER GROUP SGHC LTD meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.