ASA Gold and Precious Metals (NYSE:ASA) Fits the Minervini High-Growth Momentum Strategy

The Mark Minervini strategy joins strict technical study with fundamental growth filters to find stocks with high potential. This method uses the Trend Template to confirm a security is in a definite uptrend and then adds high growth momentum rules to find companies showing outstanding earnings and sales growth. The aim is to locate market leaders early in their growth period, giving a structured way to capture major price increases while controlling risk with specific entry and exit rules.

Meeting the Minervini Trend Template

ASA Gold and Precious Metals Ltd (NYSE:ASA) shows a strong technical profile that fits the strict needs of the Minervini Trend Template. This template is made to filter for stocks showing solid, continued uptrends, which Minervini calls Stage 2 advances, the time when most top performers make their biggest gains.

Key technical rules and how ASA fits them:

• Price Above Key Moving Averages: The current price trades well above the rising 50-day, 150-day, and 200-day simple moving averages. This order confirms buyers are in control across short, intermediate, and long-term periods.
• Moving Average Order: The 50-day SMA ($45.58) is above both the 150-day SMA ($36.95) and the 200-day SMA ($34.32), while the 150-day SMA is also above the 200-day SMA. This layered, upward-moving setup is a standard sign of a strong bull trend.
• Proximity to Highs: With a current price of $46.88, ASA is trading within 25% of its 52-week high of $53.76, meeting the template's need to focus on strength instead of weakness. Also, the price is over 140% above its 52-week low, showing a solid recovery and momentum.
• Superior Relative Strength: ASA has a ChartMill Relative Strength (CRS) score of 96.56, meaning it has done better than over 96% of the market. Minervini points out that leaders in a bull market usually have high relative strength scores, often above 80 or 90, as it shows strong institutional interest.

Qualifying for High Growth Momentum

Beyond a clean chart, the Minervini strategy looks for fundamental drive. ASA shows the kind of strong earnings growth that High Growth Momentum (HGM) filters are made to find. This fundamental power often works as the trigger that pushes the strong price trends found by the Trend Template.

The company's financial numbers show major growth:

• Earnings Per Share (EPS) Growth: The Trailing Twelve Month (TTM) EPS has grown by over 1,517% year-over-year. This degree of growth is a key feature of companies starting a high-growth period.
• Quarterly Earnings Momentum: Recent quarters show large year-over-year EPS growth, including 209.5% in the last quarter and 450.8% in the quarter before. This continuing strength shows the growth is not a single event but a continuing pattern.
• Profit Margin Expansion: The company has shown a major increase in profitability, with profit margins in the last quarter reaching a high level. Getting better margins are a key feature Minervini searches for, as they show pricing control and operational effectiveness.

Technical Health and Setup Summary

The provided technical analysis report for ASA gives the stock a top rating of 10 out of 10, reflecting its very good technical health. The long-term and short-term trends are both rated as positive, and the stock is performing in the upper part of its 52-week range. The report also notes a good setup rating of 8, suggesting prices have been consolidating recently. This pause may offer a possible entry point, with a set support zone below the current price giving a logical level for a stop-loss order.

Discover More Potential Candidates

The mix of a solid technical trend and strong fundamental growth makes ASA an interesting candidate for strategies based on Mark Minervini. For investors looking to find similar chances, this security was found using a predefined screen.

You can find more stocks that meet these "High Growth Momentum + Trend Template" rules by viewing the screen here.

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