Avino Silver & Gold Mines (ASM): A Minervini Strategy High-Growth Candidate

Identifying High-Growth Candidates with the Minervini Strategy

Mark Minervini’s investment method uses strict technical and fundamental study to find stocks with the possibility for major price gains. The method uses his specific Trend Template to confirm a stock is in a solid technical uptrend, while also focusing on strong earnings growth, sales increases, and good profit margins. This two-part view helps investors find companies that are not only technically good but also seeing fundamental progress that can support continued performance. For investors looking for high-growth chances, this method gives an organized way to assess candidates that fit with both momentum and growth investment ideas.

Technical Strength: Meeting the Minervini Trend Template

Avino Silver & Gold Mines Ltd (NYSEARCA:ASM) meets the technical standards of Minervini’s Trend Template, which is made to find stocks in clear uptrends. The template needs a stock to trade above important moving averages, show rising long-term trends, and display good relative strength. ASM’s present technical position matches these needs:

• Price Above Moving Averages: ASM’s last price of $5.16 is above its 50-day SMA ($4.71), 150-day SMA ($3.50), and 200-day SMA ($2.94). This arrangement shows both short-term and long-term positive momentum.
• Upward-Trending Averages: The 200-day SMA has increased from $2.92 to $2.94, confirming a good long-term trend. The 150-day SMA is also trending upward, supporting the stock’s strength.
• Moving Average Alignment: The 50-day SMA is above both the 150-day and 200-day SMAs, a positive sign that shows gaining momentum across different time periods.
• Proximity to Highs and Lows: ASM trades within 25% of its 52-week high of $6.67 and stays over 30% above its 52-week low of $0.85, showing continued recovery and leader potential.
• Strong Relative Strength: With a ChartMill Relative Strength of 97.83, ASM does better than almost 98% of all stocks, highlighting its market leadership.

These technical features are important in Minervini’s system, as they help remove weaker stocks and concentrate on those with confirmed upward paths.

Fundamental Momentum: High-Growth Qualities

Along with technical strength, Minervini’s method gives priority to companies showing outstanding fundamental growth. ASM displays several measures that attract high-growth investors:

• Earnings Growth:
  • EPS growth on a trailing twelve-month basis is 600%, showing a large year-over-year gain.
  • Quarterly EPS growth is at 500%, indicating good recent performance.
• Sales Acceleration:
  • Revenue growth over the past year is 53.06%, with the newest quarter showing a 47.46% rise.
  • Analysts have increased next-year revenue estimates by 10.09% over the last three months, showing belief in future growth.
• Profitability Improvements:
  • The company’s profit margin in the last quarter was 13.13%, up from 7.99% three quarters before, showing an upward direction in efficiency.
• Estimate Revisions and Surprises:
  • Next-year EPS estimates have been increased by 45.45% in the last three months, a good sign of expected earnings momentum.
  • ASM has exceeded revenue estimates in two of the last four quarters, with an average beat of 11.62%.

These fundamentals are necessary in Minervini’s SEPA method, which looks for stocks with gaining earnings, sales, and margins—important factors for “superperformance.”

Technical Health and Setup Assessment

According to ChartMill’s technical report, ASM gets a perfect score of 10, showing very good technical health. The report points out the stock’s steady performance across short and long-term time periods, as well as its leadership in the Metals & Mining industry, where it does better than 90% of similar companies. Important notes include:

• The long-term trend stays positive, while the short-term trend is neutral, suggesting stability without major decline.
• Support levels are found between $4.98, $5.02, $4.44, and $4.14, giving clear zones for possible risk management.
• Even with the good technical score, the setup rating is now 3, meaning the stock might be overstretched and missing a good consolidation shape for entry. Investors are recommended to look for a tighter trading range or pullback to better the risk-reward position.

For a full study, see the full technical report here.

Discover More High-Growth Candidates

ASM is an example of the kind of stock that fits with Minervini’s high-growth momentum method. Investors searching for similar chances can look at other candidates using the High Growth Momentum + Trend Template screen, which finds stocks meeting both technical and fundamental growth standards.

Conclusion

Avino Silver & Gold Mines presents a strong case for investors using the Minervini method, joining a good technical uptrend with notable fundamental growth measures. While the stock’s present overstretched setup suggests waiting for a better entry point, its basic strength in both trend and growth areas makes it a candidate worth further watching.

Disclaimer: This analysis is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.