Why GENEDX HOLDINGS CORP (NASDAQ:WGS) could fit Mark Minervini’s high-growth criteria

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

WGS passes 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)

Why we can consider WGS a High Growth Stock.

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:

Explosive Earnings Growth

• The quarterly earnings of WGS have shown a 190.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The earnings per share (EPS) growth of WGS is accelerating: the current Q2Q growth of 190.0% is above the previous quarter Q2Q growth of 105.0%. Earnings momentum and acceleration are key for high growth systems.
• EPS growth accelerated for 3 quarters in a row.
• The 1-year EPS growth of WGS (104.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook 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.
• The 1-year revenue growth of WGS (50.79%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• Analysts' average next Quarter EPS Estimate for WGS has witnessed a 41.67% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.
• WGS has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Financial Strength & Profitability

• The operating margin of WGS has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With a favorable trend in its free cash flow (FCF) over the past year, WGS demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• With a Debt-to-Equity ratio at 0.29, WGS showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.

Institutional Confidence & Market Strength

• WGS demonstrates a balanced ownership structure, with institutional shareholders at 89.07%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• WGS has achieved an impressive Relative Strength (RS) rating of 99.83, showcasing its ability to outperform the broader market.

How do we evaluate the setup for WGS?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, WGS has a 3 as its setup rating:

Although WGS 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.

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

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Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

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.