Endeavour Silver Corp (NYSE:EXK) Shows Strong Momentum and Growth Alignment

Identifying promising growth stocks requires a disciplined method that filters for both strong price momentum and underlying business improvement. One systematic technique combines Mark Minervini's Trend Template, which finds stocks in strong technical uptrends, with a focus on High Growth Momentum (HGM), which looks for companies showing fast and improving fundamental growth. This two-part strategy aims to find securities where outstanding business performance is being confirmed and supported by institutional buying pressure in the market.

ENDEAVOUR SILVER CORP (NYSE:EXK) recently appeared from a screen built on this idea, suggesting it deserves additional review from growth-focused investors.

Technical Strength: Aligning with the Minervini Trend Template

Mark Minervini's strategy stresses trading in the direction of the main trend, focusing on stocks already in a confirmed Stage 2 advance. The Trend Template's strict rules ensure a stock shows strength across multiple timeframes before it is considered a candidate. A review of EXK's chart and key metrics shows a strong alignment with these rules.

• Moving Average Alignment: The stock's price is trading well above its rising 50-day ($8.51), 150-day ($6.81), and 200-day ($6.05) simple moving averages. Also, the 50-day MA is above the 150-day MA, which is above the 200-day MA, creating the stacked, positive alignment Minervini looks for.
• Proximity to Highs: EXK's current price is within 10% of its 52-week high of $10.37, easily meeting the "within 25%" rule. More importantly, the price is over 200% above its 52-week low, far exceeding the 30% level and indicating strong recovery momentum.
• Superior Relative Strength: A central part of the strategy is to focus on market leaders. EXK has a ChartMill Relative Strength (CRS) ranking of 97.01, meaning it has performed better than 97% of all stocks over the past year. This outstanding relative strength is a key sign of institutional demand and leadership.

This technical view meets the central idea of the Minervini approach: to invest in strength, not weakness. The template acts as a filter to avoid stocks in basing or declining stages, concentrating capital on those already in a strong uptrend.

Fundamental Improvement: The High Growth Momentum Case

While a strong chart is necessary, Minervini's full SEPA® method emphasizes the importance of a fundamental catalyst. The High Growth Momentum rating aims to measure this by assessing the speed and quality of a company's earnings and sales growth. EXK's recent operational performance highlights several improving trends.

• Strong Sales Growth: The most recent quarter saw revenue increase by 167.3% year-over-year. This follows a prior quarter of 52.1% growth, indicating a notable improvement in top-line expansion.
• Earnings Turning Point: After a period of difficulties, the earnings picture is showing clear progress. The last reported quarter showed EPS growth of 85.7% year-over-year. More notably, analyst estimates for the next quarter project earnings growth of over 480%, suggesting the market expects a significant fundamental shift.
• Operational Scale and Future Estimates: The company's revenue growth over the trailing twelve months stands at a solid 49.2%. Furthermore, analysts have revised their revenue estimates for the next year upward by 10.75% over the last three months, reflecting growing confidence in the company's outlook.

For a growth investor, these metrics are important. They go beyond a simple view of profitability and instead focus on the rate of change. Improving sales and a projected large move to positive earnings growth can act as the fundamental catalyst that drives continued institutional interest and further price gains, fitting well into the "E" (Earnings) and "C" (Catalyst) parts of Minervini's SEPA® framework.

Consolidation and Setup Quality

A final part of the analysis is the current trading pattern. Even the strongest stocks need periods of consolidation to build energy for their next move. According to ChartMill's own analysis, EXK presents a positive setup.

The technical report gives EXK a perfect Technical Rating of 10, confirming the outstanding trend strength. At the same time, it has a Setup Rating of 7, indicating the stock has been consolidating in a relatively tight range recently, which has helped lower volatility. The analysis finds a clear support zone near $9.39 and resistance around $9.93. This type of constructive pause, following a strong prior move, is often where lower-risk entry points are found, waiting for a possible move above resistance on strong volume.

You can review the full, detailed technical analysis for EXK here: ChartMill Technical Report for EXK.

Screening for Similar Opportunities

ENDEAVOUR SILVER CORP shows the type of security a combined momentum and growth screen can find, one with a strong price trend supported by improving fundamentals. For investors interested in applying this systematic method to find other possible candidates, the predefined screen is available to run.

Discover more stocks that meet the High Growth Momentum and Minervini Trend Template criteria by visiting the pre-built screen on ChartMill.

---

Disclaimer: This article is for informational and educational purposes only. It is not a recommendation to buy or sell any security. The analysis is based on predefined screening criteria and historical data, which are not guarantees of future performance. Always conduct your own thorough research, consider your individual risk tolerance, and consult with a qualified financial advisor before making any investment decisions.