Does EQUINOX GOLD CORP (NYSEARCA:EQX) align with Mark Minervini’s trading strategy?

Our stock screener has spotted EQUINOX GOLD CORP (NYSEARCA:EQX) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Minervini Trend Template Analysis.

EQX checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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)

Understanding EQX's High Growth Momentum Score

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. EQX was assigned a score of 4 for growth:

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.
• EQX shows accelerating EPS growth: when comparing the current Q2Q growth of 2.0K% to the previous quarter Q2Q growth of 0.0%, we see the growth rate improving.
• EQX has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 93.08%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• EQX shows accelerating Sales growth: when comparing the current Q2Q growth of 93.08% to the previous quarter Q2Q growth of 50.44%, we see the growth rate improving.
• Sales growth accelerated for 2 quarters in a row.
• Over the past 3 months, analysts have adjusted their EPS Estimate for EQX with a 6.65% change. This highlights the evolving outlook on the company's EPS potential.
• 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.

Profitability & Financial Strength

• 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 a favorable trend in its free cash flow (FCF) over the past year, EQX demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• A Debt/Equity ratio of 0.37 indicates that EQX is leveraging debt effectively without excessive risk.

Market Strength & Institutional Confidence

• With 59.41% of the total shares held by institutional investors, EQX showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• EQX has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 89.4 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Why is EQX a setup?

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. EQX currently holds a 3 as its setup rating, suggesting a particular level of consolidation in the stock.

Although EQX has an excellent technical rating, it does not offer a high quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

For an up to date full technical analysis you can check the technical report of EQX

Final Thoughts

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.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.