EQUINOX GOLD CORP (NYSEARCA:EQX) Combines Strong Technicals and High Growth Momentum

The method used in finding good investment chances mixes Mark Minervini's Trend Template with a look for high growth momentum. Minervini's method focuses on stocks showing good technical health through specific moving average positions, price action compared to past ranges, and solid relative strength. This is joined with a basic filter for high growth momentum, which looks for companies with fast earnings gains, revenue growth, and better operational efficiency. The plan looks for stocks that are both in strong uptrends and have basic drivers that may lead to continued good performance.

EQUINOX GOLD CORP (NYSEARCA:EQX) appears as a choice that fits this mixed method. The company, a growth-oriented mining firm with a group of mines in five countries, now shows a good technical and basic profile.

From a technical view, EQX meets the main points of the Minervini Trend Template. The present price of $8.76 trades much higher than its main moving averages, the 50-day SMA ($6.64), 150-day SMA ($6.62), and 200-day SMA ($6.35), confirming a solid bullish position across many timeframes. Importantly, all these moving averages are also in clear upward trends, a required condition in Minervini's system that tells a good uptrend apart from a short-term bounce. The stock's place, at its 52-week high of $8.76 and over 75% higher than its 52-week low of $4.95, shows its leadership and momentum. This is further supported by a very good relative strength (RS) number of 90.47, meaning it is doing better than over 90% of the market, a sign of the market leaders Minervini's plan tries to find.

On the basic side, EQX shows the fast growth traits that high growth momentum investors look for. The company's earnings per share (EPS) growth is very strong. Its TTM EPS has grown by 480% year-over-year, and recent quarterly results show even faster increases, including a 1200% year-over-year rise in the latest quarter. While quarterly earnings can change in the mining field because of things like gold prices and production plans, the large size of these gains points to strong basic operational performance. Revenue growth is also solid, with a 74.3% rise over the past twelve months and a 77.7% year-over-year increase last quarter. This mix of rising earnings and growing revenue is a main reason a stock can keep a strong uptrend, as "big earnings attract big attention" from big investors.

The study also notes big gains in profitability. The profit margin for the last full year grew greatly to 22.4%, up from 2.65% the year before. This gain in margins, a point Minervini notes, suggests the company is not only growing but is also getting more efficient and possibly getting better pricing. While the latest quarterly margin saw a drop to 4.98%, the full yearly direction and the large growth in total earnings and cash flow (FCF per share grew 162% year-over-year) show a company in a good basic upswing.

A look at the detailed technical study report for EQX gives the stock a high score of 10 out of 10, showing its very good technical health. The report notes steady good performance across both short and long-term timeframes, confirming its place as a market leader. The long and short-term trends are both positive, and the stock is trading at a new 52-week high. However, the report also gives a warning for entry timing, giving a lower setup score. It says that while the stock is technically very good, its recent strong rise may have pushed the price up in the short term, meaning a time of pause could give a better risk/reward entry chance for new positions. For a full look at the technical levels, support areas, and complete study, readers can see the full technical report for EQX.

Investors wanting to find other companies that meet this strict mix of strong technical trends and high-growth basics can look for more possible choices using the High Growth Momentum + Trend Template screen.

Disclaimer: This is not investment advice. The content is intended to be used for informational and educational purposes only. It is crucial to conduct your own research and consider your financial situation and risk tolerance before making any investment decisions.