Checking if FULL TRUCK ALLIANCE -SPN ADR (NYSE:YMM) meets Minervini’s stock selection rules

In this article we will dive into FULL TRUCK ALLIANCE -SPN ADR (NYSE:YMM) as a possible candidate for growth investing. Investors should always do their own research, but we noticed FULL TRUCK ALLIANCE -SPN ADR showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Checking the Minervini Trend Template.

YMM 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)

Exploring YMM's Growth

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. YMM was assigned a score of 4 for growth:

Earnings Momentum

• The EPS of YMM has exhibited growth from one quarter to another (Q2Q), with a 40.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Over the past year, YMM has demonstrated 45.95% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• YMM has demonstrated strong q2q revenue growth of 28.22%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• YMM 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.

Profitability & Financial Strength

• With a favorable trend in its operating margin over the past year, YMM demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With a favorable trend in its profit margin over the past year, YMM demonstrates its ability to enhance profitability through efficient operations.
• A Debt/Equity ratio of 0.0 indicates that YMM is leveraging debt effectively without excessive risk.

Market Strength & Institutional Confidence

• With institutional shareholders at 69.92%, YMM demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• The Relative Strength (RS) of YMM has been consistently solid, with a current 95.6 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How does the Setup look for YMM

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 YMM this score is currently 5:

Although YMM has an excellent technical rating, the quality of the presented setup is not ideal 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 YMM for a complete technical analysis.

More like this

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

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.