Does GENEDX HOLDINGS CORP (NASDAQ:WGS) align with Mark Minervini’s trading strategy?

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if GENEDX HOLDINGS CORP (NASDAQ:WGS) is suited for growth investing. Investors should of course do their own research, but we spotted GENEDX HOLDINGS CORP showing up in our Minervini growth screen, so it may be worth spending some more time on it.

Does WGS pass the Minervini Trend Template check?

WGS checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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)

Understanding WGS's High Growth Momentum Score

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. WGS was assigned a score of 7 for growth:

Earnings Momentum

• WGS has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 190.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• Accelerating EPS growth for WGS: the current Q2Q growth of 190.0% exceeds the previous quarter Q2Q growth of 105.0%.
• EPS growth accelerated for 3 quarters in a row.
• Over the past year, WGS has demonstrated 104.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The q2q revenue growth of 66.57% of WGS highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• WGS shows accelerating Sales growth: when comparing the current Q2Q growth of 66.57% to the previous quarter Q2Q growth of 44.23%, we see the growth rate improving.
• WGS has demonstrated strong 1-year revenue growth of 50.79%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• WGS has seen a 41.67% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• With a track record of beating EPS estimates in the last 4 quarters, WGS showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, WGS demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• The free cash flow (FCF) of WGS has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• WGS has a Debt/Equity ratio of 0.29, indicating a balanced approach to financing growth.

Institutional Confidence & Market Strength

• With 89.07% of the total shares held by institutional investors, WGS showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• The Relative Strength (RS) of WGS has consistently been strong, with a current 99.84 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

How does the Setup look for WGS

The Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For WGS this score is currently 6:

Besides having an excellent technical rating, WGS also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price.

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

More like this

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.