Why Mark Minervini may look into ANTERO RESOURCES CORP (NYSE:AR)

In this article we will dive into ANTERO RESOURCES CORP (NYSE:AR) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ANTERO RESOURCES CORP showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Does AR pass the Minervini Trend Template check?

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for AR:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

What matters for high growth investors.

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. AR was assigned a score of 5 for growth:

Earnings Momentum

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), AR highlights its ability to generate increasing profitability, showcasing a 1.0K% growth.
• The earnings per share (EPS) growth of AR is accelerating: the current Q2Q growth of 1.0K% is above the previous quarter Q2Q growth of 152.0%. Earnings momentum and acceleration are key for high growth systems.
• Sales acceleration happened 2 quarters in a row.
• Over the past year, AR has demonstrated 950.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• AR has achieved significant quarter-to-quarter (Q2Q) revenue growth of 21.62%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• Accelerating Sales growth for AR: the current Q2Q growth of 21.62% exceeds the previous quarter Q2Q growth of -2.13%.
• Sales acceleration happened 2 quarters in a row.
• Analysts' average next Quarter EPS Estimate for AR has witnessed a 32.04% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.

Financial Strength & Profitability

• A Debt/Equity ratio of 0.18 indicates that AR is leveraging debt effectively without excessive risk.

Market Strength & Institutional Confidence

• With institutional shareholders at 85.48%, AR demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• AR has exhibited strong Relative Strength(RS) in recent periods, with a current 78.36 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Why is AR a setup?

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for AR is 4:

AR has an average technical rating and the quality of the presented setup is also not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Check the latest full technical report of AR for a complete technical analysis.

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.