CIA DE MINAS BUENAVENTUR-ADR (NYSE:BVN) Emerges as a Strong Growth and Momentum Pick Aligning with Minervini’s Trend Template

Compañía de Minas Buenaventura SAA (NYSE:BVN) has become a possible choice for investors focused on trends and growth, matching the strict standards of Mark Minervini’s Trend Template while also showing solid fundamental growth. The stock’s technical performance, along with improving earnings and revenue growth, makes it a noteworthy example for those looking for stocks with high potential.

Why BVN Matches the Minervini Trend Template

Mark Minervini’s Trend Template helps identify stocks in strong upward trends by analyzing price movement, moving averages, and relative performance. BVN fits several important conditions:

• Price Above Key Moving Averages: The stock is above its 50-day ($16.42), 150-day ($14.62), and 200-day ($14.15) moving averages, confirming short- and long-term positive trends.
• Rising Moving Averages: The 50-day, 150-day, and 200-day MAs are all moving upward, supporting the stock’s momentum.
• High Relative Strength: With a relative strength (RS) score of 76.86, BVN performs better than 76% of all stocks, showing market strength.
• Price Close to 52-Week High: Currently at $17.01, BVN is within 5.4% of its 52-week high ($17.98), a trait common in leading stocks.
• Major Gain from Low: The stock has risen 47.9% from its 52-week low ($11.50), indicating strong recovery.

These technical points match Minervini’s approach of focusing on stocks with clear upward trends, institutional interest, and breakout possibilities.

Strong Fundamental Growth

Beyond technicals, BVN shows solid fundamental growth, making it appealing for momentum investors:

• Earnings Growth:

  • EPS (TTM) is $2.04, up 424.1% YoY.
  • Quarterly EPS growth (Q2Q) is 32.7%, with earlier quarters showing even higher growth (129.2%, 533.3%, and 954.5% in previous quarters).
  • Full-year EPS growth jumped 2,171.4%, reflecting a major earnings improvement.

• Revenue Growth:

  • Revenue (TTM) increased 32.2% YoY, with the latest quarter up 33.3%.
  • Past quarterly revenue growth shows stability, with earlier quarters rising 24.7%, 18.0%, and 56.7%.

• Profit Margins:

  • Recent quarterly profit margin of 24.7% remains solid, though lower than 45.5% in the prior quarter.
  • Full-year margins improved to 34.9%, up from just 2.4% the previous year, showing better operational efficiency.

These numbers suggest BVN is not only technically strong but also fundamentally sound, with earnings and sales growth that could support further gains.

Technical Breakout Possibility

According to ChartMill’s technical analysis report:

• Technical Rating: 8/10, reflecting strong trends and momentum.
• Setup Rating: 8/10, indicating a consolidation phase with lower volatility, often before a breakout.
• Support/Resistance: Key support is at $16.97,$16.83, while resistance is near $17.30,$17.37. A move above $17.38 could signal more upside.

Read the full technical analysis report here.

Conclusion

BVN offers a strong case for investors following Minervini’s strategy, combining a solid technical setup with improving earnings and revenue growth. The stock’s upward trend, high relative strength, and better fundamentals position it as a potential leader in the metals and mining sector.

For more high-growth momentum stocks meeting the Trend Template conditions, explore the High Growth Momentum + Trend Template screen.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management strategies before trading.