Why ZAI LAB LTD-ADR (NASDAQ:ZLAB) could fit Mark Minervini’s high-growth criteria

Last update: Apr 3, 2025

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

Minervini Trend Template Analysis.

ZLAB 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)

Growth Examination for ZLAB

ChartMill assigns a High Growth Momentum Rating (HGM) to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth and profitability elements, including EPS and revenue growth, accelleration, surprises and revisions. In the case of ZLAB, the assigned 4 reflects its growth potential:

Explosive Earnings Growth

ZLAB has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 20.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
Over the past year, ZLAB has demonstrated 28.57% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
With consistent quarter-to-quarter (Q2Q) revenue growth of 64.84%, ZLAB exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
The sales growth of ZLAB is accelerating: the current Q2Q growth of 64.84% is above the previous quarter Q2Q growth of 47.72%. Sales momentum and acceleration are key for high growth systems.
Sales acceleration happened 3 quarters in a row.
ZLAB has demonstrated strong 1-year revenue growth of 49.59%, 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.
ZLAB has surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Financial Strength & Profitability

ZLAB has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
ZLAB exhibits a favorable Debt-to-Equity ratio at 0.16. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.

Market Strength

ZLAB has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 98.41 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Why is ZLAB a setup?

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. ZLAB currently holds a 6 as its setup rating, suggesting a particular level of consolidation in the stock.

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

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

More like this

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.