Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) has been identified by a screen that combines two rigorous disciplines: the Mark Minervini Trend Template and a High Growth Momentum (HGM) rating of at least 4. The Minervini Trend Template is a systematic method for identifying stocks in a strong, sustained uptrend, using a strict set of technical criteria. The HGM rating, on the other hand, evaluates a stock’s fundamental growth profile—focusing on earnings, revenue, and margin momentum. By merging these approaches, the screen targets companies that not only move well technically but also demonstrate the accelerating business performance typical of market leaders. Aurinia appears to satisfy both sets of conditions, making it a candidate for further analysis in the current positive market environment where the S&P 500’s long-term and short-term trends are both up.
Why Aurinia Meets the Minervini Trend Template
The Trend Template is built on eight specific technical rules designed to confirm a stock is in a Stage 2 uptrend. Aurinia passes all of them based on the provided data:
- Price vs. Key Moving Averages: The current price of $16.00 is above the 50-day SMA ($15.76), the 150-day SMA ($15.28), and the 200-day SMA ($14.52). This confirms a bullish posture across short, medium, and long-term timeframes.
- Moving Average Alignment & Slope: The 50-day SMA is above both the 150-day SMA and the 200-day SMA. Furthermore, the 150-day SMA is above the 200-day SMA. Critically, all three moving averages (50, 150, 200) are confirmed to be rising. This alignment is the hallmark of a strong, sustainable uptrend.
- 52-Week High & Low: The current price is 30% above the 52-week low ($16.00 vs. $7.285) and within 25% of the 52-week high (currently at $16.00 vs. a high of $16.88). The latter is particularly important as Minervini seeks stocks "near their yearly highs" where momentum is strongest.
- Relative Strength: The ChartMill Relative Strength score is an exceptional 91.55. This means Aurinia has outperformed 91% of all stocks, a critical criterion for identifying potential market leadership.
Why Aurinia Fits High Growth Investing
The fundamental data for Aurinia is equally strong, especially for an investor focused on earnings and revenue acceleration. The company has demonstrated a remarkable turnaround in profitability.
- Earnings Growth & Acceleration: The TTM (Trailing Twelve Months) EPS growth is 221.43% year-over-year. More importantly, the EPS acceleration over the last three quarters is undeniable:
- EPS Growth Q2Q (Q-2): 130.0%
- EPS Growth Q2Q (Q-1): 2500.0%
- EPS Growth Q2Q (Current): 56.25%
- Projected EPS Growth Q2Q (Q+1): 54.28%
- Revenue Growth: Revenue is also accelerating. Sales growth over the last TTM is 20.62%, with recent quarterly comparisons showing a strong 24.40% year-over-year increase.
- Earnings Quality & Revisions: The company has beaten EPS estimates in all of the last four quarters, averaging a beat of 22.33%. The forward-looking sentiment is also positive, with EPS Next Year revisions over the last 3 months increasing by 18.81%.
- Profitability: The company has moved from negative to strong positive margins, with a current quarterly profit margin of 44.21% and free cash flow per share of $1.30, representing 908.60% growth year-over-year.
This combination of accelerating earnings, strong revenue expansion, and a high rate of positive estimate revisions is the exact fundamental backdrop that Minervini and other growth investors look for to support a technical breakout.
Technical Analysis Summary
The ChartMill Technical Report gives Aurinia an excellent overall rating of 9 out of 10. It confirms a positive long-term and short-term trend. The Setup Rating stands at 8 out of 10, indicating that the stock is in a constructive consolidation phase. The report notes the stock is trading near its 52-week high with strong relative strength and identifies a clear support zone near $14.26 and a resistance zone around $16.02-$16.42. This creates a defined risk/reward setup for a potential breakout.
For a full breakdown of the technical health and suggested trading setup, you can view the detailed ChartMill Technical Analysis Report for AUPH.
To find more stocks that successfully combine the strength of the Minervini Trend Template with high-growth momentum, you can explore the full list of results from the 'High Growth Momentum + Trend Template' screen here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own due diligence and consider consulting with a financial advisor before making any trading decisions.
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Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) Screens as Strong Candidate Based on Minervini Trend Template and High Growth Momentum Rating
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) has been identified by a screen that combines two rigorous disciplines: the Mark Minervini Trend Template and a High Growth Momentum (HGM) rating of at least 4. The Minervini Trend Template is a systematic method for identifying stocks in a strong, sustained uptrend, using a strict set of technical criteria. The HGM rating, on the other hand, evaluates a stock’s fundamental growth profile—focusing on earnings, revenue, and margin momentum. By merging these approaches, the screen targets companies that not only move well technically but also demonstrate the accelerating business performance typical of market leaders. Aurinia appears to satisfy both sets of conditions, making it a candidate for further analysis in the current positive market environment where the S&P 500’s long-term and short-term trends are both up.
Why Aurinia Meets the Minervini Trend Template
The Trend Template is built on eight specific technical rules designed to confirm a stock is in a Stage 2 uptrend. Aurinia passes all of them based on the provided data:
Why Aurinia Fits High Growth Investing
The fundamental data for Aurinia is equally strong, especially for an investor focused on earnings and revenue acceleration. The company has demonstrated a remarkable turnaround in profitability.
This combination of accelerating earnings, strong revenue expansion, and a high rate of positive estimate revisions is the exact fundamental backdrop that Minervini and other growth investors look for to support a technical breakout.
Technical Analysis Summary
The ChartMill Technical Report gives Aurinia an excellent overall rating of 9 out of 10. It confirms a positive long-term and short-term trend. The Setup Rating stands at 8 out of 10, indicating that the stock is in a constructive consolidation phase. The report notes the stock is trading near its 52-week high with strong relative strength and identifies a clear support zone near $14.26 and a resistance zone around $16.02-$16.42. This creates a defined risk/reward setup for a potential breakout.
For a full breakdown of the technical health and suggested trading setup, you can view the detailed ChartMill Technical Analysis Report for AUPH.
To find more stocks that successfully combine the strength of the Minervini Trend Template with high-growth momentum, you can explore the full list of results from the 'High Growth Momentum + Trend Template' screen here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own due diligence and consider consulting with a financial advisor before making any trading decisions.
Read full article here »