In the search for stocks with high growth potential, many traders use organized methods that combine detailed technical study with fundamental momentum. One well-known method is the Mark Minervini strategy, which uses a defined Trend Template to identify stocks in strong, confirmed uptrends. This method is combined with an emphasis on high-growth fundamentals, looking for companies showing increasing earnings and sales. The aim is to locate securities where good price movement is matched by better business results, forming a combination of technical and fundamental health. This article looks at First Majestic Silver Corp (NYSE:AG) using this two-part view, considering its fit as a possible choice for this strict growth and momentum method.
Following the Minervini Trend Template
The Minervini Trend Template is made to sort for stocks showing clear technical health, confirming they are in a definite Stage 2 uptrend. For a stock to pass, it must satisfy a set of fixed rules about moving averages, price location, and relative strength. First Majestic Silver Corp now matches these central technical points.
- Moving Average Order: The stock's price is above all main moving averages, the 50-day ($19.35), 150-day ($13.66), and 200-day ($12.04), and each of these averages is moving up. Importantly, the shorter-term averages are ordered above the longer-term ones (50-day > 150-day > 200-day), a standard sign of a sound, speeding uptrend.
- Price Location vs. 52-Week Range: A main point of the Minervini method is to concentrate on strength, not low price. AG's present price is about 324% higher than its 52-week low of $5.09, showing a strong recovery pattern. At the same time, it is within 25% of its 52-week high of $27.90, meaning it keeps momentum close to its highest levels instead of being far past them.
- Better Relative Strength: Maybe most significant is the stock's relative strength (RS) score of 99.07. This means AG has done better than almost 99% of all stocks in the market over the last year. Minervini states that real market leaders show high RS, as they are the first to gain institutional money and lead market advances.
This technical picture indicates AG is not just recovering but is in a continued, leading-quality uptrend, meeting the basic "trend" part of the Minervini SEPA (Specific Entry Point Analysis) method.
Fundamental Momentum for High-Growth Investors
While the Trend Template confirms a stock is technically good, the Minervini method aims to join this with fundamental speed. The "High Growth Momentum" part of the filter looks for companies where earnings and sales growth are not only good, but are increasing at a faster pace. AG's recent financial numbers show notable momentum here.
- High Earnings Growth: The company has reported very high year-over-year earnings per share (EPS) growth in recent periods. The latest period showed growth of 333%, after earlier periods of 157%, 183%, and 200% growth. This series of repeated, three-figure growth is a key sign of fundamental speed that high-growth investors look for.
- Strong Sales Growth: This earnings rise is backed by good top-line growth. Revenue growth for the last period was 95%, following earlier periods of 94% and 130% growth. Analysts have noticed, greatly adjusting their estimates higher; the average EPS estimate for the next year has been increased by 93.75% over the last three months.
- Getting Better Profitability: After a time of change, the company's profit margin has shown clear betterment, becoming positive and reaching 9.46% in the last reported period. This change from negative or small margins to steady profitability is an important turning point that often draws investor notice and can support more price gains.
This fundamental picture fits the Minervini idea that "big earnings draw big notice." The mix of speeding sales, rising profits, and positive analyst changes creates the "catalyst" and fundamental health that, when combined with a good technical trend, can come before large price changes.
Technical Condition and Setup Review
Beyond the exact Trend Template filters, a wider technical study of AG supports its good position. According to ChartMill's own report, the stock gets a complete Technical Rating of 10 out of 10, showing very good condition across many time frames. Both its long-term and short-term trends are scored as positive. The report states that AG is a top performer not just in the whole market but also in its Metals & Mining industry, doing better than 94% of similar companies.
The stock also shows a reasonable setup pattern, with a Setup Rating of 6. The study points to lower volatility as prices have moved in a wide band over the past month, possibly gathering force for its next price move. A defined support area is found near $21.10, which could act as a sensible place for a stop-loss order in a planned trading strategy. For a full review of the support, resistance, and a sample trade setup, readers can see the full technical analysis report for AG.
End and More Study
First Majestic Silver Corp offers a strong example of a security that now meets the two needs of the Minervini-inspired filter: a clean technical trend following a strict template, paired with high fundamental momentum in earnings and sales. This combination indicates the stock is performing as a leader, with its price health supported by real business gain.
For investors and traders looking to find other securities that match this mix of high-growth fundamentals and good technical trends, more study can be done using the set filter. You can look for more possible choices by using the "High Growth Momentum + Trend Template" filter here.
Disclaimer: This article is for information and learning only. It is not meant as investment guidance, a suggestion, or an offer to buy or sell any security. The study is based on present data and methods, which may change. Investing has risk, including the possible loss of the main amount. Always do your own study and think about talking with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.
