AGNICO EAGLE MINES LTD (AEM) Passes Minervini Trend Template and High Growth Momentum Screen

A systematic method for finding high-potential stocks joins strict technical screening with fundamental growth review. The process used here applies Mark Minervini's Trend Template to identify securities showing strong upward momentum and technical condition, while also using a High Growth Momentum (HGM) filter to confirm these choices also have the basic fundamental speed that frequently supports continued price gains. This two-part method aims to locate leaders that are not only technically in good shape but are also seeing major operational growth.

Meeting the Minervini Trend Template

AGNICO EAGLE MINES LTD (NYSE:AEM) shows a strong technical image by meeting the main points of the Minervini Trend Template. This template is made to filter for stocks in a clear Stage 2 uptrend, greatly raising the chance of a trade matching the current market momentum.

• Price Above Key Moving Averages: The stock's present price is located above its rising 50-day, 150-day, and 200-day simple moving averages. This layered arrangement is a standard signal of continued bullish momentum across several time periods.
• Moving Average Alignment: The 50-day SMA ($153.56) is above both the 150-day SMA ($129.17) and the 200-day SMA ($120.13), and the 150-day SMA is also above the 200-day SMA. This step-by-step order verifies that the short, medium, and long-term trends are all coordinated and directed upward.
• Proximity to Highs: The present price is trading within 25% of its 52-week high of $187.50, showing the stock keeps strong momentum and is not stuck far from its top. Also, the price is more than 130% above its 52-week low, a sign of a strong trend.
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) rating of 94.84, AEM is doing better than almost 95% of all stocks in the market. Minervini points out that true market leaders show this kind of better relative strength, as institutional money moves into the top-performing names first.

High Growth Momentum Fundamentals

Beyond a clean chart, AEM's inclusion is supported by its solid High Growth Momentum (HGM) rating, which examines the fundamental engine behind the price movement. The "M" in Minervini's SEPA methodology means "Fundamentals," highlighting that large price moves are usually supported by strong earnings and sales growth.

• Explosive Earnings Growth: The company has reported very high year-over-year earnings per share (EPS) growth, with the latest quarter jumping 81.3%. This speed is even more visible in earlier quarters, which saw growth of 101.3% and 121.1%. On a trailing twelve-month (TTM) basis, EPS has grown over 106%.
• Strong and Accelerating Revenue: Top-line growth is also very good, with recent quarterly revenue increasing 35.6% year-over-year. This is not a single event, as the prior quarters showed growth of 34.9% and 26.6%, pointing to a continued and speeding up trend.
• Positive Earnings Surprises and Revisions: AEM has exceeded EPS estimates in all of the last four quarters, with an average beat of 10.6%. More significantly, analysts have been actively increasing their future estimates, with the average EPS estimate for next year moved up by 39.5% over the last three months. This "earnings revision" part is a main element of the Minervini method, as rising analyst estimates often draw more institutional interest.
• Expanding Profit Margins: The company's profitability is getting better, with the profit margin in the last reported quarter growing to 38.0%, up greatly from 22.9% two quarters before. This shows operational efficiency and pricing ability, which are important for maintaining high growth.

Technical Health Overview

The technical report for AEM gives a top rating of 10 out of 10, showing outstanding technical condition. The long-term and short-term trends are both rated as positive, and the stock is trading near its 52-week high. While the report mentions that the present setup rating is lower because of recent volatility making a good entry point less obvious, the basic technical strength is still clear. The stock shows several levels of support, which can offer a buffer during declines.

For a detailed look at the technical analysis, you can see the full technical report for AEM.

Finding Similar Opportunities

AGNICO EAGLE MINES LTD offers a strong example of a stock that fits both a powerful technical trend and solid fundamental growth factors. For investors looking to find other choices that meet this strict mix of Minervini's trend template and high growth momentum rules, more study can be done using preset screens.

You can look at more stocks that match this specific profile by using the 'High Growth Momentum + Trend Template' screen on ChartMill.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice of any kind. The author has no position in AEM. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. All investments involve risk, including the possible loss of principal.