ELDORADO GOLD CORP (NYSE:EGO) Shows Strong Technical and Fundamental Momentum

ELDORADO GOLD CORP (NYSE:EGO) has become an interesting option for investors using systematic growth plans. The stock was found by a screening method that joins Mark Minervini's Trend Template with High Growth Momentum standards, forming a two-part method that finds companies with both good technical momentum and fundamental growth features. This process aims to find stocks in clear upward trends while making sure they have the earnings and sales speed that usually supports continued price growth.

Technical Strength Using Minervini's Trend Template

ELDORADO GOLD CORP shows very good fit with Minervini's Trend Template, which works to find stocks in solid, clear upward trends. The template's rules are made to filter for securities showing continued upward momentum over several time periods, and EGO fits these rules well:

• Current price ($29.45) trades well above all key moving averages (50-day: $24.62, 150-day: $20.61, 200-day: $19.22)
• All moving averages are trending upward, confirming continued positive momentum
• The 50-day moving average sits comfortably above both the 150-day and 200-day averages
• Current price sits 121% above its 52-week low of $13.29 while trading within 0.4% of its 52-week high of $29.58
• Relative strength ranking of 92.35 indicates the stock is doing better than 92% of the market

These technical features are important within Minervini's structure because they find stocks in what he calls "Stage 2" upward moves, times when continued institutional buying and good feeling create a setting for further price growth. The stock's place near 52-week highs with good relative strength fits especially well with Minervini's focus on market leadership.

Fundamental Growth Factors

Besides technical strength, ELDORADO GOLD CORP displays the fundamental speed that High Growth Momentum investing looks for. The company's financial results show notable betterment across important measures:

• EPS growth of 139% in the last full year, speeding up from 662% in the year before
• Quarterly EPS growth keeps good momentum at 33% in the newest quarter
• Revenue growth of 31% in the last full year, much better than 16% in the prior year
• Recent quarterly revenue growth of 52% shows increasing business speed
• Profit margins have grown significantly, reaching 20% in the latest quarter compared to 10% in the previous full year

These fundamental gains are key within the Minervini structure, which notes that "big earnings attract big attention." The mix of speeding earnings growth, growing profit margins, and good revenue momentum forms the fundamental catalyst that usually supports continued institutional interest and price growth.

Operational Base

The company's operational structure backs its growth path. ELDORADO GOLD runs four mining assets in Turkey, Canada, and Greece, giving geographic spread while keeping attention on gold production with some polymetallic work. This varied operational base joined with better gold prices has formed the right conditions for the company's notable financial recovery and growth speed.

Technical Review Summary

According to ChartMill's technical study report, EGO gets a full technical rating of 10 out of 10, showing very good technical health across both short and long-term time periods. The report notes steady performance compared to the whole market and finds several support levels between $22.07 and $29.11 that could give downside protection. While the stock's recent movement leads to a lower setup rating of 3, suggesting investors might look for a period of stability before starting new positions, the basic technical strength is clear.

View the complete technical analysis report for ELDORADO GOLD CORP

Investment Points

For investors following the Minervini method, EGO presents an interesting case of a stock fitting both technical and fundamental rules for possible leadership. The mix of full technical ratings, good relative strength, and speeding fundamental performance creates the kind of situation that growth momentum plans look for. However, as with any momentum-based method, position size and risk control stay important, especially with the stock's closeness to all-time highs.

Discover more High Growth Momentum + Trend Template candidates

Disclaimer: This analysis is for informational and educational purposes only and does not constitute investment advice. All investments carry risk, and past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.