Using a methodical process that joins technical ability with basic momentum, traders can find stocks set for possible expansion. The system used here brings together Mark Minervini's Trend Template, which selects for securities showing firm upward trends and technical soundness, with a High Growth Momentum (HGM) screen to identify companies presenting accelerating business results. This two-part plan tries to find stocks that are both in a strong price uptrend and supported by getting better operational numbers, focusing on chances where technical and basic elements agree.
Technical Strength and Trend Template Alignment
GRUPO CIBEST SA-ADR (NYSE:CIB) presents a strong technical profile that meets the strict requirements of the Minervini Trend Template. This template is made to find stocks in steady stage 2 uptrends, making sure an investor is purchasing into strength instead of trying to buy a declining stock.
Important technical requirements and how CIB fits them are:
- Price Above Key Moving Averages: The stock's present price trades solidly above its increasing 50-day, 150-day, and 200-day simple moving averages. This arrangement verifies that short, medium, and long-term trends are all good.
- Moving Average Alignment: The 50-day SMA ($54.01) is above both the 150-day SMA ($47.08) and the 200-day SMA ($45.64), and the 150-day SMA is also above the 200-day SMA. This ordered positive arrangement is a sign of a sound, continued uptrend.
- Proximity to Highs: With a present price of $63.22, CIB is trading within 25% of its 52-week high of $63.28, showing firm momentum and an absence of overhead resistance. Also, the price is more than 30% above its 52-week low of $30.68, confirming a major recovery and positive trend.
- Superior Relative Strength: The stock has a ChartMill Relative Strength (CRS) rating of 94.8, meaning it is doing better than almost 95% of all stocks in the market. Minervini points out that leaders in a bull market usually show high relative strength, as it indicates institutional buying and market leadership.
High Growth Momentum Fundamentals
Beyond a clean chart, the High Growth Momentum screen looks for companies with accelerating business basics. For growth investors, these numbers are important as they often come before continued price increases. CIB shows several encouraging signals of operational momentum.
- Recent Earnings Acceleration: The company's latest quarterly EPS growth year-over-year was 24.4%, a major gain. This pickup from earlier quarters indicates a good change in profitability.
- Consistent Earnings Surprises: A notable basic strength is CIB's history of surpassing analyst predictions. The company has exceeded EPS estimates in all of the past four quarters, with an average surprise of 21.8%. Repeated beats often result in upward changes in future estimates and greater investor trust.
- Improving Profit Margins: The profit margin in the last reported quarter was 11.66%, showing a sequential gain from the previous quarter's 10.88%. Growing margins can be a strong cause of earnings expansion and show successful cost control or pricing ability.
- Positive Analyst Revisions: Analysts have been increasing their estimates, with the average EPS estimate for next year going up by 2.06% over the past three months. Upward changes are a firm basic catalyst that can support further price momentum.
Summary of Technical Analysis Report
The detailed technical report for GRUPO CIBEST SA-ADR gives a top rating of 10 out of 10, reflecting outstanding technical soundness. The analysis finds that the stock shows steady performance across both short and long-term periods and is greatly outperforming the general market. It is presently trading near the top of its recent range and has just reached a new 52-week high, a generally positive signal. While the report states that the firm recent price increase may suggest a time of consolidation, the basic technical view remains sound. For a full breakdown of the support levels and detailed analysis, you can see the full technical report for CIB.
Discovering Similar Opportunities
For investors looking for other stocks that match this mix of technical strength and growth momentum, the screening method that found GRUPO CIBEST SA-ADR can be a useful instrument. You can find more possible choices by using the "High Growth Momentum + Trend Template" screen on ChartMill.
Disclaimer: This is not investment advice. The content is intended for information and education purposes only. It is crucial to conduct your own research and consider your financial situation and risk tolerance before making any investment decisions. Please read our full disclaimer and terms of use to understand our obligations.
