The method used to find possible investment candidates joins a strict technical structure with attention to fundamental growth speed. This process takes ideas from the tactics of well-known trader Mark Minervini, which stress purchasing stocks in firm, confirmed uptrends that are also showing fast gains in their basic business measures. The technical base is the Minervini Trend Template, a list made to sort for stocks showing definite, multi-timeframe power. This is then combined with a filter for high growth momentum, looking for firms that are not only rising on the chart, but are doing so with the backing of quickly increasing earnings and sales. The aim is to spot leaders early in their large price advances, where the combination of forceful technical momentum and solid fundamental growth makes a good risk/reward situation.
A Technical Profile Aligned with Strength
AVINO SILVER & GOLD MINES (NYSEARCA:ASM) shows a convincing technical view that matches closely with the ideas of the Minervini Trend Template. The template's main goal is to spot stocks in a clear Stage 2 advance, and ASM's price movement and moving average arrangement indicate it fits many important points.
- Trend Alignment: The stock is trading above all its main simple moving averages (SMAs), the 50-day ($8.05), 150-day ($5.78), and 200-day ($5.19). Also, these averages are in the correct bullish order, with the shorter-term 50-day SMA above the longer-term 150-day and 200-day SMAs. This layered setup shows continued buying pressure across many timeframes.
- Proximity to Highs: A principle of the trend template is to focus on power, not low price. ASM's present price, while below its latest high, stays much higher, over 689% above its 52-week low of $1.17. This large outperformance shows a strong recovery trend has been active.
- Market-Relative Strength: Maybe most notably, ASM's ChartMill Relative Strength (CRS) score of 99.56 shows it has done better than over 99% of all stocks in the past year. This outstanding relative strength is a mark of market leadership, a trait Minervini's method actively looks for. Firm stocks often remain firm, and this measure puts ASM clearly with the top performers.
Fundamental Acceleration: The Engine for Growth
While a firm chart is necessary, the Minervini method gives notable importance to the fundamental cause moving the price action. For high-growth investors, ASM's latest financial results show the type of fast speed that can draw institutional attention and maintain a large uptrend.
- Earnings Surge: The company's earnings per share (EPS) growth is notable. Year-over-year EPS growth for the trailing twelve months is at 900%. Even more convincing for momentum is the latest quarterly speed: the last reported quarter showed EPS growth of 600% compared to the same quarter a year before, and the quarter before that grew by 500%. This sequence of repeated, high-level earnings beats is a clear sign of a firm entering a high-growth period.
- Solid Sales Growth: Top-line growth is equally solid, giving a firm base for the earnings jump. Revenue for the last quarter grew by nearly 188% year-over-year, after a 47% gain in the earlier quarter. This points to firm demand and effective operation, not just cost reduction.
- Gaining Profitability: The growth is changing directly to the bottom line. The company's profit margin in the last quarter was about 36.6%, a large gain from 13.1% in the prior quarter and 12.2% for the last full fiscal year. This margin growth suggests operating leverage and pricing ability are becoming active, which can greatly increase profits as sales grow.
Technical Analysis Summary
ChartMill's own technical report gives ASM a high score of 9 out of 10, showing its very good technical condition. The analysis notes the stock's exceptional yearly performance and leading position within the Metals & Mining industry. While the short-term trend is now neutral as the stock settles its large gains, the long-term trend stays positive. The report also finds an acceptable setup pattern, with price settling in recent weeks and a defined support area near $8.80. For a full list of support, resistance levels, and a sample trade setup, readers can see the complete technical analysis report for ASM.
Finding Similar Opportunities
The mix of a Minervini-style trend template and high growth momentum filters can be a strong tool for checking the market. Investors trying to find other stocks that show this mix of technical power and fundamental speed can examine the preset screen used in this analysis. You can find more possible candidates by running this ‘High Growth Momentum + Trend Template’ screen here.
Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. The analysis is based on given data and uses a specific investment strategy as an example. All investing has risk, including the chance of losing the original amount. You should do your own complete research and think about talking with a qualified financial advisor before making any investment choices.