ZAI LAB LTD-ADR (NASDAQ:ZLAB) – A High-Growth Biotech Stock Meeting Minervini’s Criteria

ZAI LAB LTD-ADR (NASDAQ:ZLAB) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The biopharmaceutical company, focused on oncology, autoimmune disorders, infectious diseases, and neuroscience, demonstrates strong technical and fundamental characteristics that make it a candidate for growth-oriented investors.

Why ZLAB Fits the Minervini Trend Template

Minervini’s strategy emphasizes stocks in strong uptrends with clear technical strength. ZLAB meets these criteria:

• Price Above Key Moving Averages:
  • Current price ($41.00) is above the 50-day ($31.98), 150-day ($30.46), and 200-day ($28.96) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.
• Upward-Trending Averages:
  • The 200-day MA has been rising, indicating a long-term uptrend.
• Strong Relative Strength:
  • ZLAB’s relative strength ranking is 95.84, meaning it outperforms nearly 96% of all stocks.
• Price Near 52-Week High:
  • The stock is trading within 7.5% of its 52-week high ($44.34) and is up 119% over the past year.

High Growth Momentum Fundamentals

Beyond technical strength, ZLAB exhibits accelerating growth metrics:

• Revenue Growth:
  • Trailing 12-month revenue growth of 43.7%, with quarterly sales up 22.2% year-over-year.
  • Previous quarters show even stronger growth (65.7%, 47.7%, and 45.9%).
• Earnings Improvements:
  • EPS growth over the past year improved by 31.4%, with recent quarterly EPS up 20%.
  • Analysts have raised next-year EPS estimates by 18.9% in the last three months.
• Industry Leadership:
  • ZLAB outperforms 95% of biotechnology stocks, reinforcing its position as a sector leader.

Technical Analysis Summary

According to ChartMill’s technical report, ZLAB scores a perfect 10/10 for technical strength, supported by:

• A strong uptrend in both short-term and long-term timeframes.
• Multiple support levels, including key moving averages and trendlines.
• High liquidity, with average daily volume exceeding 1.2 million shares.

While the stock’s recent volatility suggests waiting for a consolidation before entry, its overall technical and growth profile remains compelling.

For a deeper analysis, review the full technical report on ZLAB.

Our High Growth Momentum + Trend Template screener lists more high-growth stocks meeting these criteria.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk tolerance before making investment decisions.