ADMA Biologics is Thursday's pick for IBD 50 Growth Stocks To Watch. ADMA stock is building a cup base as the biotech has the added benefit of being profitable. Many biotech companies operate at a loss as they invest heavily in research and development which can affect their bottom line.
ADMA Biologics is giving back around 3.3% of Wednesday's 10.1% jump in heavy volume. The biotech stock was highlighted in Wednesday's Big Picture column by Investor's Business Daily.
The biopharmaceutical company develops biologic products used to prevent and treat infectious diseases in immune-compromised patients. It currently has three Food and Drug Administration approved products. It also operates ADMA BioCenters specializing in the collection of human plasma used to make its medications.
ADMA Biologics continues to be a quality growth stock as it ranks No. 3 on the IBD 50 and held the top spot of the elite list in 2024. ADMA stock also sits on the IBD Leaderboard watchlist.
The biotech stock ranks No. 2 out of 723 stocks in the Medical-Biomed/Biotech group, which holds the 49th spot out of the 197 industry groups tracked by IBD.
How To Know It's Time To Sell Your Favorite Stock
ADMA Stock Builds A Cup Base
ADMA stock is on pace for four straight weeks of gains. The biotech stock is building the right side of a 43% deep cup base with a 23.64 buy point, according to MarketSurge pattern recognition. The base is a second-stage base and earlier-stage bases tend to produce larger gains than later ones.
Shares are above their 21-day exponential moving average and the line is ticking up.
The biotech stock continues to outperform as seen in its 97 Relative Strength Rating, which has been at 94 or higher over the last year.
Biotech Name Shows Robust Profit Growth
ADMA reported higher-than-expected fourth-quarter sales with a mild miss on earnings estimates on March 3.
Revenue climbed 59% following two quarters of 78% growth. The company has a three-year sales growth rate of 73% according to IBD Stock Checkup.
Fourth-quarter profit rose to 14 cents per-share from four cents per-share a year ago. Profit projections call for 16 cents per-share in the first quarter ramping up to 20 cents per-share over the next four quarters.
Its full-year 2024 earnings jumped to 49 cents a share from a penny in 2023. Full-year 2025 forecasts show profit climbing to 71 cents a share, or 45%, and then rising to 98 cents in 2026.
Revenue Climbing Toward $1 Billion
The company in the fourth-quarter earnings release raised its full-year 2025 revenue outlook to more than $490 million, and $605 million for 2026. It also projected more than $1 billion of total annual revenue prior to 2030.
"ADMA delivered exceptional operating and financial results in 2024, with total revenues and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) growing 65% and 309% year-over-year, respectively," ADMA Chief Executive Adam Grossman said in the earnings release.
Its IBD Accumulation/Distribution Rating of A- indicates fairly heavy institutional buying over the last 13 weeks. Mutual funds have been adding the biotech stock, with 562 owning shares in December, up from 494 in September and 378 in June.
And its 1.3 up/down volume ratio shows positive demand for ADMA stock over the last 50 days.
Lastly, it holds a near-perfect 98 Composite Rating.
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