Centerra Gold Inc. (NYSE:CGAU) Combines Minervini Trend Strength with High Growth Momentum

The method used to find possible investment candidates joins a strict technical structure with attention to fundamental growth progress. This process is based on the methods made common by trader Mark Minervini, which stress purchasing stocks already in strong uptrends that also have backing from quickening business fundamentals. The technical base is the Minervini Trend Template, a list made to sort for stocks showing firm, multi-timeframe upward progress. This is then combined with a review of High Growth Momentum (HGM), which examines a company's earnings, revenue, and profit margin directions to find those with bettering operational results. The combined effect of these filters seeks to find securities where good price movement is supported by basic business health, a pairing frequently looked for by growth-focused investors.

Meeting the Minervini Trend Template

CENTERRA GOLD INC (NYSE:CGAU) shows a strong technical view that matches the requirements of the Minervini Trend Template. This template is important as it methodically finds stocks in a confirmed Stage 2 advance, aiding investors to steer clear of downtrends and flat periods in favor of confirmed leading stocks.

A check of the main points shows CGAU fits the template's strict benchmarks:

• Price vs. Moving Averages: The present price of $15.17 trades notably higher than the rising 50-day ($12.61), 150-day ($9.66), and 200-day ($8.86) simple moving averages (SMAs). This order confirms the stock is in a clear uptrend across all main timeframes.
• Moving Average Order: The 50-day SMA is higher than both the 150-day and 200-day SMAs, while the 150-day SMA is higher than the 200-day SMA. This successive bullish order of averages shows continued and quickening buying activity.
• Nearness to Highs: The stock is trading within 2% of its 52-week high of $15.47, a main Minervini rule that concentrates on strength instead of low price. At the same time, the present price is about 180% higher than its 52-week low of $5.41, showing a strong recovery direction.
• Relative Strength: With a ChartMill Relative Strength (CRS) score of 97.64, CGAU is doing better than almost 98% of the whole market. Outstanding relative strength is a sign of market leadership and a central filter in the Trend Template, making sure the stock is a top performer.

This firm technical setting points to institutional buying and a high chance the stock is in a lasting uptrend, which is the main entry requirement for the Minervini method.

Fundamentals Backing High Growth Momentum

While the Trend Template deals with the "when" to buy, the High Growth Momentum rating aids with "why" the stock is moving. For CGAU, several fundamental measures point to a major operational recovery and quickening profitability, giving a fundamental reason for the price rise.

• Very High Earnings Growth: The company has reported very high yearly earnings per share (EPS) growth, with a 1,725% rise in the last full fiscal year. This comes after a 180% growth in the year before, marking a strong and continued earnings speed-up.
• Firm Latest Quarterly Results: The most recent quarter shows a 77.8% year-over-year rise in EPS, a noted speed-up from the 8.7% growth in the quarter before. This hints that good progress is ongoing.
• Major Margin Improvement: A key sign of bettering efficiency and pricing ability is seen in the profit margin. The last reported quarter's profit margin rose greatly to 73.9%, a major improvement from 23.8% in the prior quarter and 10.2% two quarters before.
• Positive Analyst Changes: Analysts are becoming more positive, with the average EPS guess for the next year changed upward by 17.6% over the last three months. Upward changes often come before more price gains as they show bettering future outlooks.
• Firm Estimate Exceedances: The company has exceeded EPS guesses in three of the last four quarters by an average of almost 25%, showing a steady habit of beating market forecasts.

These items together build a firm High Growth Momentum profile. The strategy notes that the largest stock winners are usually pushed by strong earnings breakouts and bettering fundamentals, which seem to be active for Centerra Gold.

Technical Health Summary

The given technical study report gives a short summary of CGAU's chart health. The stock gets a full Technical Rating of 10 out of 10, reflecting very high strength in both its short-term and long-term directions. It is doing better than most of the market and its industry group. The report states the stock is trading near its 52-week high and has shown firm recent performance. However, it also mentions that the high price swings over the past month have led to a lower Setup Rating of 3, meaning that while the direction is very good, the stock may be stretched in the short term and might gain from a time of settling before offering a new lower-risk entry chance. For a full look at the support points and complete study, readers can see the full ChartMill Technical Report for CGAU.

Finding Like Chances

CENTERRA GOLD INC works as a real example of a security that fits a joined technical and fundamental growth plan. For investors looking to use like filters to find other possible candidates, the preset screen that found CGAU is ready for use. You can view more results and use this "High Growth Momentum + Trend Template" screen yourself through this link: Discover High Growth Momentum Stocks in a Trend.

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Disclaimer: This article is for information and learning only. It does not form a suggestion to buy, sell, or keep any security. The study is based on given data and past performance, which is not a guide for future outcomes. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.