For investors looking for a mix of strong earnings momentum and timely technical patterns, a multi-factor screen can be a useful tool. By selecting for stocks with a solid High Growth Momentum Rating, a high Technical Rating, and a good Setup Quality Rating, the method tries to find companies that are both increasing at a fast rate and are in a sound technical uptrend, while also forming a possible entry point. This method combines the fundamental ideas of the CANSLIM system with organized technical study, concentrating on stocks ready for a resumption of their upward movement.
ALAMOS GOLD INC-CLASS A (NYSE:AGI) appears as a candidate from this type of screen, offering a situation for both growth and momentum investors to review.
Fundamental Growth Momentum
Alamos Gold's fundamental profile displays the sort of quickening performance that high-growth momentum methods look for. The company's High Growth Momentum Rating of 6 shows firm scores across several important measures the rating assesses.
- Earnings Acceleration: The newest quarterly EPS growth year-over-year was reported at a notable 94.7%. This comes after a sequence of 41.7%, 7.7%, and 108.3% growth in the prior quarters, pointing to variable but strong earnings jumps. For the future, analysts project next quarter's EPS growth to be 129.3%.
- Strong Annual Growth: Over a trailing twelve-month period, EPS has increased 61.8%, adding to full-year growth of 52.8% last year and 89.3% the year before. This shows a continued time of major bottom-line growth.
- Sound Sales Expansion: Revenue growth is also good, with the most recent quarter up 28.1% year-over-year and TTM sales growth at 31.3%. This top-line health backs the earnings narrative.
- Cash Flow and Margin Expansion: Free cash flow per share has jumped 95.7% over the past year. Also, the profit margin in the last reported quarter grew notably to 59.8%, up from 36.4% in the previous quarter, a good signal of operational effectiveness and benefit from gold prices.
While the company has a varied history on earnings surprises and recent analyst changes have been somewhat negative for next year's EPS, the overall view is of a gold producer in a strong period of profitability and cash creation. For the momentum investor, these quickening quarterly results and solid annual patterns are key to the idea.
Technical Strength and Setup Quality
Apart from the fundamentals, AGI shows very good technical condition. According to its detailed technical report, the stock receives a complete Technical Rating of 10 out of 10. This score measures the stock's trend strength and performance compared to the market.
- Strong Uptrend: Both the short-term and long-term trends are scored as positive. The stock is trading above all main moving averages (20, 50, 100, and 200-day), and these averages are all in a rising arrangement.
- Market Leadership: The stock's relative strength is a highlight, doing better than 93% of all stocks in the market over the past year. While it is a typical performer inside its specific Metals & Mining industry, its wide market leadership is significant.
- Consolidation for Continuation: Maybe most important for timing an entry, AGI has a Setup Rating of 7. The study states the stock is showing a "decent setup pattern" with less volatility as prices consolidate after a firm upward move. This activity has formed what the report calls a bull flag pattern, a standard continuation setup often monitored by technical traders.
- Clear Risk Parameters: The technical study finds a nearby resistance area around $37.47-$37.51. A clear move above this level could be seen as the restart of the uptrend. On the other hand, a specified support area exists between $33.01 and $34.06, which could act as a sensible place for a stop-loss order, giving a clear risk-management point.
This pairing, a complete score for trend condition and a fair score for setup quality, implies the stock is both in a firm uptrend and may also be giving a lower-risk chance to join that trend's next phase.
Conclusion
Alamos Gold shows a meeting of fundamental momentum and technical preparation. For investors using a high-growth momentum method, the company's fast quarterly EPS growth, growing margins, and solid annual patterns supply the fundamental reason. The technical view confirms the strength of this move, displaying firm relative performance and a chart formation that hints at a pause inside a major uptrend, possibly giving a specific entry point. This matching of conditions is exactly what the combined screening process aims to find: fundamentally healthy growth stories that are also technically set for their next rise.
Interested in finding more stocks that match this high-growth momentum breakout profile? You can review the current screening outcomes and perform your own study via this link.
Disclaimer: This article is for information only and does not form investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and should not be the only foundation for an investment choice. Investors should do their own review and think about their personal financial situation and risk tolerance before making any investment. Past results are not a guide for future outcomes.
