First Majestic Silver Corp (NYSE:AG) Shows Strong Technical and High Growth Momentum Profile

A systematic method for finding high-potential growth stocks joins strict technical study with fundamental momentum filters. The process uses Mark Minervini's Trend Template, which finds stocks showing strong technical condition through defined moving average arrangement, price level, and relative strength measures. This technical base is then combined with a High Growth Momentum (HGM) rating, which assesses a company's earnings and sales speed to find those with strong fundamental potential. This two-part plan aims to locate market leaders in the first phases of a major price increase.

Technical Strength and the Trend Template

FIRST MAJESTIC SILVER CORP (NYSE:AG) shows a strong technical profile that matches the conditions of the Minervini Trend Template. This template is made to filter for stocks in a confirmed Stage 2 uptrend, and AG fits these conditions across several time periods.

The stock's present price action and moving average setup are especially solid:

• The present price of $12.75 is trading above the rising 50-day ($10.96), 150-day ($8.50), and 200-day ($7.82) simple moving averages.
• The 50-day moving average is located above both the 150-day and 200-day averages, while the 150-day average also trades above the 200-day, confirming a positive arrangement.
• The long-term trend is supported by the 200-day moving average's upward direction, having risen from its past value of $7.78.

This formation is vital for the Minervini plan as it shows continued institutional buying and a stock that is being accumulated, two signs of a major market winner.

Price Performance and Relative Strength

Beyond the moving averages, AG's price performance against its own history and the wider market further strengthens its technical position.

• The present price is located about 150% above its 52-week low of $5.09, showing major recovery and momentum.
• It is trading within 19% of its 52-week high of $15.69, showing the stock is displaying leadership by testing new high ground.
• Most notably, AG has a ChartMill Relative Strength (CRS) rating of 93.25, meaning it has performed better than 93% of all stocks over the last year.

A high relative strength rating is a key part of the Minervini method, as it finds market leaders that are wanted no matter the wider market situation. Stocks that lead during a market rise are frequently the ones that create the most substantial gains.

High Growth Momentum Fundamentals

The technical move upward is supported by a strong fundamental growth story, which is measured by the High Growth Momentum rating. AG shows fast growth in important earnings and sales measures.

The company has shown a notable turnaround and speed in profitability:

• Earnings Per Share (EPS) for the trailing twelve months (TTM) grew 145% year-over-year.
• Quarterly EPS growth is even more distinct, with the latest quarter increasing 157% compared to the same quarter last year.
• This earnings speed is increasing, as shown in the past quarters displaying growth of 183% and 200%, respectively.

For revenue, the company is also seeing solid expansion:

• Revenue for the TTM period rose by over 61%.
• Sales growth for the last quarter was a strong 94% year-over-year.

This pairing of speeding up earnings and sales growth is exactly what the HGM rating aims to find, as "big earnings attract big attention" from institutional investors, often acting as the trigger for a continued price increase.

Profitability and Cash Flow

Supporting the growth story is a major gain in profitability and cash flow creation.

• The profit margin in the last reported quarter grew significantly to 19.89%, up from a small 0.93% in the previous quarter.
• Free Cash Flow per Share (TTM) saw a large rise of 179% over the past year.

Gaining profit margins are a key idea of the Minervini plan, as they show a company has pricing control and operational effectiveness, which can lead to large earnings growth as sales rise.

Technical Analysis Overview

According to the detailed ChartMill Technical Report, AG gets a complete technical rating of 10 out of 10. The report summary states that AG is a "steady performer, scoring decent points in every aspect analyzed." Both its short-term and long-term trends are rated as positive. While the stock's very good technical condition is clear, the report states that its present setup quality is lower because of recent price movement, indicating that investors should watch for a period of stability for a better entry point. Important support levels are found between $10.22-$10.25 and at $11.67, giving logical zones for initial stop-loss setting.

Discovering Similar Opportunities

For investors looking for other companies that fit this strict model of technical strength and high fundamental growth, a predefined screen exists. This screen methodically finds stocks that meet both the Minervini Trend Template and a high growth momentum rating, making the search for possible market leaders simpler.

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