Is ASCENDIS PHARMA A/S - ADR (NASDAQ:ASND) a Minervini-style stock?

Our stock screener has spotted ASCENDIS PHARMA A/S - ADR (NASDAQ:ASND) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

ASND passes the Minervini Trend Template check!

ASND 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)

Understanding ASND's High Growth Momentum Score

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. ASND has achieved a 4 out of 10:

Explosive Earnings Growth

• ASND has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 58.44% increase. This indicates improving financial performance and the company's effective management of its operations.
• The earnings per share (EPS) growth of ASND is accelerating: the current Q2Q growth of 58.44% is above the previous quarter Q2Q growth of 40.28%. Earnings momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 2 quarters in a row.
• Over the past year, ASND has demonstrated 23.25% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 26.3%, ASND 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 ASND is accelerating: the current Q2Q growth of 26.3% is above the previous quarter Q2Q growth of 20.4%. Sales momentum and acceleration are key for high growth systems.
• Sales acceleration happened 2 quarters in a row.
• With notable 1-year revenue growth of 36.34%, ASND exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.

Financial Strength & Profitability

• The operating margin of ASND has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• The free cash flow (FCF) of ASND has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.

Strong Market Performance

• ASND has achieved an impressive Relative Strength (RS) rating of 85.37, showcasing its ability to outperform the broader market.

How does the Setup look for ASND

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 ASND this score is currently 4:

ASND has an excellent technical rating, but the quality of the setup is only medium 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.

For an up to date full technical analysis you can check the technical report of ASND

More like this

It looks like ASCENDIS PHARMA A/S - ADR meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

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.