ADMA Biologics (ADMA) may be the best-kept secret on the IBD 50 list of growth stocks, but you could say it’s hiding in plain sight. ADMA stock sits at the very top spot on the list. The biotech firm has been there since its debut on the screen Aug. 9 — without much fanfare — and continues to lead with strong stock performance and top-notch fundamentals.
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ADMA Biologics has a best-possible 99 IBD Composite Rating. And its 99 Relative Strength Rating even outperforms powerhouse Nvidia‘s (NVDA) 98 RS Rating. Nvidia stock ranks third in the IBD 50.
ADMA stock also holds the No. 1 spot out of 733 in the medical-biomed biotech group, which ranks No. 36 out of 197 industry groups that IBD tracks.
The company develops specialty plasma-derived human immune globulin, essentially blood protein products. The treatments are used to prevent and treat infectious diseases in patients with immunodeficiencies.
The biopharmaceutical company has three products approved by the Food and Drug Administration. It is developing a pneumonia biologic and has an ongoing pediatric clinical study for Asceniv. The latter is a treatment for primary immunodeficiency, an immune system disorder. It also operates 10 ADMA BioCenters, specializing in human plasma collection used to make its medications.
ADMA Stock Shows Textbook Climb
Trouble is, there doesn’t seem to be a convenient path into the biotech stock right now. Shares are extended after a relentless climb to new highs without pausing to create a new base.
ADMA’s latest entry was in April when it bounced off its 10-week moving average and the stock was at a low price of 6. Its last true base, also in April, had a 6.76 buy point. The stock currently trades nearly three times that. The prior entries were below IBD’s $10 minimum threshold to highlight. Its next base likely will be on the radar.
Its steep relative strength line is something to behold, as it trounced the benchmark S&P 500 index with its 330% gain so far this year. The stock also trades near record highs.
Shares surged nearly 31% in heavy volume Aug. 9, after ADMA crushed second-quarter adjusted earnings and sales expectations. A similar move happened after its first-quarter earnings release on May 9, which sent the stock soaring 27%, also in giant volume.
Biotech Raises Its Revenue Forecasts
In its second-quarter earnings release, the biotech reported adjusted earnings of 13 cents a share. That compares with 1 cent four quarters ago and losses prior to that. Quarterly sales also popped 78% and breached the $100 million milestone.
“ADMA’s excellent second-quarter results showcased the strength of our operations, innovative business and product offerings, enabling the company to significantly increase both 2024 and 2025 financial guidance,” ADMA Chief Executive Adam Grossman said in the earnings release.
The company raised its full-year 2024 revenue outlook to more than $400 million. It also upped its 2025 forecast to $445 million. FactSet full-year 2024 estimates call for earnings of 48 cents a share. That’s up from a penny in 2023. Analysts expect 65 cents a share in 2025.
Mutual funds have discovered this hidden gem with 360 owning shares in June. That’s up from 315 in March and 283 in December. It holds an Accumulation/Distribution Rating of A, indicating heavy institutional buying over the last 13 weeks.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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