For investors looking to join strong fundamental growth with timely technical entry points, a multi-layered screening method can be very useful. One such method uses filters for stocks that show three important traits: a high ChartMill Technical Rating (above 7) to confirm a strong uptrend, a high Setup Rating (above 7) to find a constructive consolidation pattern ready for a breakout, and a solid High Growth Momentum Rating (above 4) to confirm the company is showing forceful earnings and sales acceleration. This method tries to find companies with explosive fundamental momentum just as their stock prices are tightening for the next possible move higher. First Majestic Silver Corp (NYSE:AG) currently presents a strong case that fits all these strict conditions.
Fundamental Growth Momentum
The center of the High Growth Momentum method is finding companies with outstanding and often speeding earnings power. First Majestic Silver stands out here, having a High Growth Momentum Rating of 7. This score combines several important growth measures, and a detailed look shows the reasons for AG's good result.
- Outstanding Earnings Growth: The company's earnings per share (EPS) growth is remarkable. On a trailing twelve-month (TTM) basis, EPS has jumped by about 454%. More notably, the quarterly momentum is strong, with the most recent quarter showing a 900% year-over-year rise in EPS. The earlier quarters also showed large growth of 333% and 157%, pointing to a continued time of forceful earnings increase.
- Strong Sales Increase: Top-line growth backs the bottom-line surge. Revenue in the last quarter grew by 169% compared to the same time last year, after good growth of 95% and 94% in the two quarters before. This steady, triple-digit sales growth gives a firm base for the earnings momentum.
- Positive Revisions and Cash Flow: Analyst opinion is supporting the positive direction, with the average EPS estimate for the next year adjusted upward by almost 17% over the last three months. Also, the company's free cash flow per share has grown by 198% over the past year, highlighting the quality and durability of its financial results.
These factors, explosive EPS and sales growth, positive analyst revisions, and good cash flow generation, are exactly what the High Growth Momentum Rating is made to find, making AG a top choice for investors centered on fundamental speed.
Technical Strength and Setup Quality
While good fundamentals give the "why" for an investment, technical analysis gives insight into the "when." According to the detailed ChartMill Technical Report, First Majestic Silver shows excellent technical health, receiving a perfect Technical Rating of 10.
- Clear Uptrend: The report states that both the long-term and short-term trends are positive. The stock is trading above all its main moving averages (20, 50, 100, and 200-day), which are all rising, a classic sign of a good, set uptrend.
- Market Outperformance: AG's performance is much better than its peers and the wider market. It has done better than 99% of all stocks over the past year and is in the higher part of its 52-week range. While the report notes it is a little behind the S&P 500's new highs, its 346% gain over the past twelve months shows its position as a market frontrunner.
- Consolidation and Setup: Importantly for entry timing, AG has a Setup Rating of 7. The analysis shows that after its large rise, the stock has been pausing its gains, trading in a range between about $19.87 and $27.90 over the past month. This pause has lowered volatility and made a clear support area between $21.55 and $21.82. The setup indicates that a move above recent resistance could point to the next breakout stage, with a set support level below to handle risk.
A Merging Opportunity
First Majestic Silver Corp presents a merging of factors that high-growth momentum investors seek. Fundamentally, it is in the middle of a striking earnings and sales speeding cycle, confirmed by positive analyst revisions. Technically, it is in a forceful, long-term uptrend and is currently resting in a consolidation pattern that gives a possible entry point with clear risk measures. The mix of a High Growth Momentum Rating of 7, a perfect Technical Rating of 10, and a constructive Setup Rating of 7 makes AG a stock that suits a disciplined method seeking growth at a sensible technical price.
This review of First Majestic Silver was found from a specific screen for high-growth momentum stocks in technical breakout setups. You can find more possible choices that fit these exact conditions by running the High Growth Momentum Breakout Setups screen yourself.
Disclaimer: This article is for information only and does not make up investment advice, a suggestion, or an offer or request to buy or sell any securities. The review presented is based on given data and should not be the only base for an investment choice. All investing includes risk, including the possible loss of principal. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.
