Alamos Gold (NYSE:AGI) Combines High Growth Momentum with Strong Technical Setup

For investors looking to join solid fundamental growth with well-timed technical entry signals, a layered screening method can be very useful. One approach uses filters to find stocks showing three main traits: a high ChartMill Technical Rating (above 7) to verify a strong uptrend, a high Setup Rating (above 7) to spot a good consolidation pattern, and a firm High Growth Momentum Rating (above 4) to confirm the company is displaying solid earnings and sales momentum. This combination seeks to find companies that are not only expanding quickly but are also set up technically for a possible next step upward. One stock that recently appeared from this scan is ALAMOS GOLD INC-CLASS A (NYSE:AGI).

Fundamental Growth Momentum

Alamos Gold makes a strong case for growth-focused investors, shown by its High Growth Momentum Rating of 6. This number brings together several key parts of short-term earnings and sales momentum, which are important for growth strategies like CANSLIM.

• Outstanding Earnings Growth: The company is in a solid earnings acceleration period. Year-over-year EPS growth for the trailing twelve months is at a notable 61.8%. More important, the latest quarter saw EPS jump 94.7% against the same quarter last year, a marked increase from the 41.7% growth seen in the quarter before.
• Solid and Increasing Sales: Revenue growth is healthy, with TTM sales up 31.3%. The most recent quarterly sales growth of 28.1% follows good results in earlier periods. Also, analyst forecasts point to continued progress, expecting sales growth above 72% for the coming quarter.
• Growing Profitability: A main idea of high-growth momentum investing is increasing profit margins, which AGI shows clearly. The company's profit margin in the last reported quarter was 59.8%, a large increase from 36.4% in the prior quarter and 4.6% two quarters before. This pattern points to better operational efficiency and pricing strength.
• Positive Cash Flow Generation: The company's free cash flow per share has increased by 95.7% over the last year, highlighting the quality of its earnings and its financial health.

This mix of accelerating earnings, solid sales, margin growth, and cash flow increase supports the stock's selection from a fundamental momentum view. The High Growth Momentum Rating successfully shows these forces, helping investors see past basic valuation to the core business progress.

Technical Strength and Trend

While fundamental momentum finds what to buy, technical analysis can help with when. Alamos Gold also performs well here, receiving a top ChartMill Technical Rating of 10. This highest score shows very good technical condition across various time periods.

• The long-term trend is clearly positive, while the short-term trend is now neutral, indicating the stock might be pausing inside a bigger uptrend.
• AGI's price action is firm compared to the wider market, doing better than 94% of all stocks over the past year and displaying a steady pattern of higher prices.
• The stock is priced above all its main moving averages (20, 50, 100, and 200-day), which are all in upward arrangements, a typical sign of a sound uptrend.

This flawless technical rating verifies that the stock is a market leader from a price performance perspective, matching the growth investor's liking for leading equities.

Setup Quality and Trade Dynamics

A high technical rating by itself does not promise a best entry point; a stock can be stretched. This is where the Setup Rating of 7 becomes key. It shows that AGI is making a good consolidation pattern, providing a possible entry chance with defined risk.

According to the full technical report, AGI has been moving in a range between about $35.44 and $40.98 over the last month and is now placed in the middle of this range. This consolidation has let the stock reduce any overbought state and form a new base of support.

• Support Zones: The analysis notes several important support levels below the present price, with the closest key area between $38.21 and $38.40. This area is strengthened by several moving averages and trendlines, giving a sensible place for a protective stop-loss order.
• Resistance: There is seen to be very little direct resistance above the present trading range, indicating a open path upward if the stock can push through its consolidation.
• Setup Summary: The report states that AGI "has an excellent technical rating and also presents a decent setup pattern," with the recent decline possibly giving a good entry point.

For investors using this joined momentum and breakout plan, AGI stands as a candidate where solid fundamental growth is paired with a technically good chart that is forming for a possible next move higher.

Finding Similar Opportunities

The screening method that found Alamos Gold can be used regularly to discover new candidates. By concentrating on the three parts of High Growth Momentum, firm Technical Ratings, and good-quality Setups, investors can methodically look for stocks where solid earnings trends and positive chart patterns meet.

For those wanting to check the current market for similar high-growth momentum breakout formations, you can view the ready-made screen here.

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Disclaimer: This article is for information only and is not investment advice, a suggestion, or an offer or request to buy or sell any securities. The study shown is based on data and tools from ChartMill, and it should not be the only reason for any investment choice. Investing in stocks has 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 decisions. Past results do not guarantee future outcomes.