How does EQUINOX GOLD CORP (NYSEARCA:EQX) stack up against Mark Minervini’s strategy?

In this article we will dive into EQUINOX GOLD CORP (NYSEARCA:EQX) as a possible candidate for growth investing. Investors should always do their own research, but we noticed EQUINOX GOLD CORP showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Minervini Trend Template Analysis.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for EQX:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Unpacking EQX's High Growth Momentum Rating

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. EQX scores a 4 out of 10:

Explosive Earnings Growth

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), EQX highlights its ability to generate increasing profitability, showcasing a 2.0K% growth.
• The earnings per share (EPS) growth of EQX is accelerating: the current Q2Q growth of 2.0K% is above the previous quarter Q2Q growth of 0.0%. Earnings momentum and acceleration are key for high growth systems.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 93.08%, EQX exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• Accelerating Sales growth for EQX: the current Q2Q growth of 93.08% exceeds the previous quarter Q2Q growth of 50.44%.
• Sales acceleration happened 2 quarters in a row.
• The average next Quarter EPS Estimate by analysts was adjusted by 6.65%, reflecting the evolving market expectations for the company's EPS growth.
• EQX has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Financial Strength & Profitability

• EQX has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With positive growth in its free cash flow (FCF) over the past year, EQX showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• With a Debt/Equity ratio of 0.37, EQX appears to have a manageable debt load relative to its assets.

Market Strength & Institutional Confidence

• EQX demonstrates a balanced ownership structure, with institutional shareholders at 59.41%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• The Relative Strength (RS) of EQX has consistently been strong, with a current 93.22 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Why is EQX a setup?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, EQX has a 8 as its setup rating:

EQX has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 6.46, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Check the latest full technical report of EQX for a complete technical analysis.

More like this

It looks like EQUINOX GOLD CORP meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.