Lexicon Pharmaceuticals (NASDAQ:LXRX) has emerged from a stock screen designed to identify candidates that align with the principles of both Mark Minervini’s technical Trend Template and a High Growth Momentum (HGM) framework. The methodology first filters for stocks that satisfy the strict moving average and price criteria of Minervini's system, which seeks to isolate securities in a confirmed Stage 2 uptrend. From that technically strong pool, the screen then applies a fundamental filter, requiring an HGM rating of at least 4 out of 10. This ensures that the company is not only moving well on a chart but also displaying the kind of accelerating earnings and sales growth that historically supports sustained price appreciation.
Recent Performance
LXRX has delivered a remarkable performance over the past year, with the stock price appreciating by over 119%. This gain is not clustered in a single spike but has been spread relatively evenly over the period, a sign of consistent institutional demand. The stock currently trades at $2.37, which is near the top of its 52-week range ($1.00 to $2.68). While the S&P 500 itself is trading near highs, LXRX is demonstrating relative strength that has outperformed 95% of all other stocks in the market. Within its own industry group, Pharmaceuticals, it ranks in the top 16% of performers.
Volumes have been healthy, with an average daily turnover of over 3.5 million shares, adding liquidity that is favorable for active traders.
Valuation Metrics & Technical Health
The stock passes every single criterion of the Minervini Trend Template, confirming a strong technical setup:
- Price vs. Moving Averages: The current price of $2.37 is above the 50-day ($2.05), 150-day ($1.65), and 200-day ($1.59) simple moving averages.
- Moving Average Alignment: The 50-day SMA ($2.05) is above the 150-day ($1.65) and the 200-day ($1.59). The 150-day is also above the 200-day. All three key averages are currently rising.
- 52-Week Range: The price is 137% above the 52-week low of $1.00 and is within 12% of the 52-week high of $2.68, satisfying the rules for being well off the bottom and close to the highs.
- Relative Strength: The ChartMill Relative Strength score is 95.61, well above the required threshold of 70 and in the ideal 80s-90s range.
The ChartMill Technical Rating for LXRX is a perfect 10 out of 10. This score reflects the stock's strong and consistent trend across both short and long timeframes.
High Growth Fundamentals
Why does this technical strength matter for a growth investor? According to the Minervini method, strong price action is often validated by powerful underlying business fundamentals. The screen highlighting LXRX confirms this with a High Growth Momentum rating that is supported by several key metrics:
- Earnings Growth (EPS): The company has reported accelerating earnings growth. The EPS growth over the last TTM year is 86.3%. More importantly, the acceleration has been consistent, with quarter-over-quarter EPS growth of 100% in the most recent quarter, following growth rates of 55.6%, 77.8%, and 105.9% in the three prior quarters.
- Sales Growth (Revenue): Top-line growth is even more explosive. The most recent quarter saw revenue growth of 1572% compared to the same quarter last year. This is supported by a TTM revenue growth rate of 123%.
- Consensus Beats & Revisions: The company isn't just growing; it is consistently exceeding expectations. It has beaten both EPS and Revenue estimates in each of the last four quarters, with average beats of 74% on earnings and 218% on revenue. This has led to a 32.4% upward revision to next year's earnings estimates over the last three months.
These numbers—strong, accelerating earnings and revenue combined with significant upward estimate revisions—are precisely the catalysts that Minervini’s strategy seeks to identify.
Analyst Views & Setup Quality
The strong consensus beats and upward estimate revisions suggest that analyst sentiment is turning more positive. However, the current price action has been somewhat volatile. The stock has traded in a wide range ($1.84 to $2.68) over the last month and is currently in the middle of that range. Consequently, while the overall technical health is excellent, the setup quality score is a moderate 3 out of 10. The analysis suggests waiting for tighter consolidation to form before looking for a more precise entry point.
For a detailed breakdown of the support levels and trend analysis, view the full technical report.
Looking for More Candidates
This screen is designed to be a starting point for discovering stocks that combine superior technical strength with explosive growth fundamentals. You can run the filter yourself to find the latest opportunities.
Click here to access the 'High Growth Momentum + Trend Template' screen and view more results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading and investing in stocks involves risk, and you should always conduct your own research and consider your own financial situation before making any trading decisions. Past performance is not indicative of future results.
Read full article here »
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Lexicon Pharmaceuticals (NASDAQ:LXRX) Scores Perfect 10 Technical Rating After 119% Rally
Lexicon Pharmaceuticals (NASDAQ:LXRX) has emerged from a stock screen designed to identify candidates that align with the principles of both Mark Minervini’s technical Trend Template and a High Growth Momentum (HGM) framework. The methodology first filters for stocks that satisfy the strict moving average and price criteria of Minervini's system, which seeks to isolate securities in a confirmed Stage 2 uptrend. From that technically strong pool, the screen then applies a fundamental filter, requiring an HGM rating of at least 4 out of 10. This ensures that the company is not only moving well on a chart but also displaying the kind of accelerating earnings and sales growth that historically supports sustained price appreciation.
Recent Performance
LXRX has delivered a remarkable performance over the past year, with the stock price appreciating by over 119%. This gain is not clustered in a single spike but has been spread relatively evenly over the period, a sign of consistent institutional demand. The stock currently trades at $2.37, which is near the top of its 52-week range ($1.00 to $2.68). While the S&P 500 itself is trading near highs, LXRX is demonstrating relative strength that has outperformed 95% of all other stocks in the market. Within its own industry group, Pharmaceuticals, it ranks in the top 16% of performers.
Volumes have been healthy, with an average daily turnover of over 3.5 million shares, adding liquidity that is favorable for active traders.
Valuation Metrics & Technical Health
The stock passes every single criterion of the Minervini Trend Template, confirming a strong technical setup:
The ChartMill Technical Rating for LXRX is a perfect 10 out of 10. This score reflects the stock's strong and consistent trend across both short and long timeframes.
High Growth Fundamentals
Why does this technical strength matter for a growth investor? According to the Minervini method, strong price action is often validated by powerful underlying business fundamentals. The screen highlighting LXRX confirms this with a High Growth Momentum rating that is supported by several key metrics:
These numbers—strong, accelerating earnings and revenue combined with significant upward estimate revisions—are precisely the catalysts that Minervini’s strategy seeks to identify.
Analyst Views & Setup Quality
The strong consensus beats and upward estimate revisions suggest that analyst sentiment is turning more positive. However, the current price action has been somewhat volatile. The stock has traded in a wide range ($1.84 to $2.68) over the last month and is currently in the middle of that range. Consequently, while the overall technical health is excellent, the setup quality score is a moderate 3 out of 10. The analysis suggests waiting for tighter consolidation to form before looking for a more precise entry point.
For a detailed breakdown of the support levels and trend analysis, view the full technical report.
Looking for More Candidates
This screen is designed to be a starting point for discovering stocks that combine superior technical strength with explosive growth fundamentals. You can run the filter yourself to find the latest opportunities.
Click here to access the 'High Growth Momentum + Trend Template' screen and view more results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading and investing in stocks involves risk, and you should always conduct your own research and consider your own financial situation before making any trading decisions. Past performance is not indicative of future results.
Read full article here »