Zymeworks Inc (NASDAQ:ZYME) Shows Strong Technical and Fundamental Momentum

A methodical way to find high-potential growth stocks joins detailed technical study with fundamental momentum filters. The system brings together Mark Minervini's Trend Template, which sorts for stocks showing solid uptrends and sound technical condition, with a High Growth Momentum (HGM) rating that spotlights companies with quickening earnings and sales expansion. This two-part plan seeks to find equities that are both in strong technical formations and have the fundamental strength to maintain their progress, focusing on securities before they experience large price gains.

Meeting the Minervini Trend Template

Zymeworks Inc (NASDAQ:ZYME) shows a technical picture that fits well with the standards in the Minervini Trend Template. This template is made to find stocks in a confirmed Stage 2 uptrend, making sure an investor is purchasing into strength and momentum instead of trying to find a bottom.

Important technical matches for ZYME are:

• The present price of $18.05 is higher than its rising 150-day SMA ($14.12) and 200-day SMA ($13.89).
• The 50-day SMA ($17.02) is above both the 150-day and 200-day moving averages, confirming positive alignment across different periods.
• The stock is trading 100% higher than its 52-week low of $9.03 and within 10% of its 52-week high of $19.98, showing strong momentum and nearness to new highs.
• With a ChartMill Relative Strength (CRS) rating of 83.83, ZYME is performing better than a large part of the market, a sign of leading stocks.

These technical states are important within the Minervini system because they together indicate that institutional buyers are in charge, the long-term trend is sound, and the stock has the possibility to keep moving up.

Fundamentals for High Growth Momentum

Beyond a sound chart, ZYME shows fundamental traits that meet the needs for high growth momentum investing. This plan looks for companies displaying strong acceleration in their business numbers, which often comes before major price increases.

The company's recent financial results point out several good patterns:

• Earnings Acceleration: The EPS growth from one quarter to the next has shown clear betterment, with the latest quarter growing 33.3% and the quarter before that jumping 111.1%.
• Sales Momentum: Revenue growth is also strong, with the last quarter increasing 72.6% year-over-year. The two quarters before that saw even larger growth of 153.2% and 170.3%, in order.
• Analyst Optimism: Maybe most important is the large upward change in analyst estimates. The average EPS estimate for next year has been moved up by 44.0% over the past three months, while the revenue estimate has been increased by 37.9%, showing rising belief in the company's future.
• Earnings Surprises: The company has surpassed EPS estimates in 3 of the past 4 quarters, creating a history of doing better than expected.

These fundamental accelerations are a central part of the growth investing idea, as they suggest the company is starting a period of very fast growth that is probable to draw more institutional interest and push the stock price up.

Technical Health and Setup Summary

According to the detailed ChartMill Technical Report, ZYME gets a good technical rating of 7 out of 10. The report mentions a steady overall performance with a positive long-term trend, although some short-term consolidation is visible. The stock is trading in the high part of its 52-week range, and a few specific support areas are found between $12.24 and $16.46, which could offer sensible places for stop-loss orders. While the very good technical rating is a positive, the report states the present setup quality is medium, implying investors could look for a tighter consolidation or a move back toward support for a better entry point.

Discover More High-Growth Candidates

The mix of a solid technical trend and quickening fundamentals makes ZYME an interesting candidate for more study by growth-focused investors. For those looking to find similar chances, this stock was found using a preset screen that methodically uses these standards.

You can find more stocks that fit this "High Growth Momentum + Trend Template" profile by using the predefined screen on ChartMill.

Disclaimer: This analysis is for informational and educational purposes only and is not intended as investment advice. The information provided does not constitute a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Please read our full disclaimer here.