ZEEKR INTELLIGENT TECHNO-ADR (NYSE:ZK) Identified as High-Growth Momentum Stock with Strong Technical Trends

ZEEKR INTELLIGENT TECHNO-ADR (NYSE:ZK) has been identified as a candidate through a screening process that combines Mark Minervini’s Trend Template with High Growth Momentum (HGM) criteria. This two-step method finds stocks with both strong technical trends and solid growth fundamentals, key parts of Minervini’s approach to spotting high-potential stocks. The strategy focuses on stocks in clear upward trends (Stage 2) with improving earnings, revenue growth, and relative strength, while the HGM rating confirms the company shows strong expansion metrics.

Why ZK Matches the Minervini Trend Template

The Trend Template assesses stocks based on price movement, moving averages, and momentum. ZK meets several important criteria:

1. Price Above Key Moving Averages

   • The current price ($28.24) is above the 50-day SMA ($27.35), 150-day SMA ($26.14), and 200-day SMA ($25.83). This alignment confirms a positive long-term trend.
   • The 200-day SMA is rising, a key requirement for Minervini’s strategy, indicating continued upward movement.

2. Relative Strength

   • ZK’s relative strength ranking (CRS) of 92.95 shows it performs better than 93% of all stocks—a sign of market leadership. It also ranks in the top 12% of its Automobiles industry.

3. Close to 52-Week High

   • The stock is within 15% of its 52-week high ($33.32), meeting Minervini’s preference for stocks near highs, which often continue their upward trend.

4. Stage 2 Uptrend Confirmation

   • Both short-term and long-term trends are positive, according to the technical report. The stock has gained 84.6% over the past year, with recent consolidation hinting at possible further gains.

High Growth Momentum Fundamentals

ZK’s growth metrics fit the HGM screen’s focus on improving financial performance:

• Revenue Growth:

  • Quarterly revenue growth (Q2Q) of 48.7% year-over-year, with steady improvement over recent quarters (30.7% to 58.4% in prior periods).
  • Annual revenue growth (TTM) of 44%, reflecting strong demand for its electric vehicles and related technologies.

• Earnings Momentum:

  • EPS growth increased by 77.1% year-over-year in the latest quarter, with forward estimates predicting a 37.5% rise.
  • While still negative (-$0.28 EPS TTM), the trend shows notable improvement (36.1% growth over the past year).

• Industry Trends:

  • As a BEV (Battery Electric Vehicle) innovator, ZK benefits from global moves toward electrification and China’s leading role in EV production.

Technical Outlook

ChartMill’s technical report gives ZK a rating of 8/10, noting its strong trend but moderate setup quality due to recent volatility. Key points:

• Support Levels: Strong support at $27.00–$27.35 (multiple moving averages and trendlines) and $25.50 (daily horizontal line).
• Resistance: Near-term resistance at $29.88–$30.18, a move above which could signal more gains.
• Volume: Lower recent volume suggests consolidation, but a surge on breakout would confirm positive momentum.

For a detailed analysis, see the full technical report here.

Next Steps for Investors

ZK offers a strong case for growth-focused traders, combining Minervini’s trend criteria with improving fundamentals. Investors should watch the $30 resistance level for breakout confirmation and use stops near support levels to manage risk.

To find similar high-growth momentum stocks that fit the Trend Template, run the screen here.

Disclaimer: This analysis is for informational purposes only and not investment advice. Conduct your own research or consult a financial advisor before making decisions. Read our full disclaimer here.