Hudbay Minerals Inc (NYSE:HBM) Shows Strong CAN SLIM Investment Profile

The CAN SLIM investment methodology, created by William O'Neil, uses both fundamental and technical analysis to find high-growth market leaders. This methodical process assesses companies using seven main factors represented by the acronym CAN SLIM, concentrating on earnings speed, yearly growth patterns, new products or services, supply and demand forces, market position, institutional backing, and the general market trend. The method looks for companies with solid fundamental growth that also display technical health and institutional support.

Earnings and Sales Momentum

Hudbay Minerals Inc (NYSE:HBM) shows very good quarterly results that fit well with the "C" part of CAN SLIM, which focuses on current quarterly earnings and sales speed. The company's latest quarterly report shows notable improvement over the same period last year:

• Quarterly EPS growth: 760.89%
• Quarterly revenue growth: 26.06%

These numbers are well above the CAN SLIM minimum target of 20-25% growth, pointing to good operational speed. The very high EPS growth indicates not just more revenue but also better operational efficiency and profit.

Annual Earnings Growth and Profitability

The "A" part of CAN SLIM calls for steady yearly earnings growth, and Hudbay Minerals matches this standard with strong past performance. The company's three-year EPS compound annual growth rate is 25.11%, directly meeting the CAN SLIM minimum target of 25% growth. Also, the company has a return on equity of 10.09%, above the 10% level suggested in the method and showing good use of shareholder money.

Relative Strength and Market Position

Hudbay Minerals displays good technical features that meet the "L" requirement for leadership. The stock's relative strength rating of 91.77 shows it is performing better than almost 92% of all stocks, placing it solidly within the market leadership group that CAN SLIM investors want. This technical health supports the fundamental growth story and implies institutional acknowledgment of the company's potential.

Institutional Backing and Supply Factors

The "I" requirement centers on institutional backing, and Hudbay Minerals has balanced institutional ownership at 80.14%, under the 85% level that could suggest too much crowding. This amount indicates potential for more institutional buying while already showing considerable smart money interest. The company also has a careful debt-to-equity ratio of 0.22, far below the maximum 2.0 level, showing financial steadiness and lower borrowing risk.

Technical and Fundamental Assessment

According to the technical analysis report, Hudbay Minerals gets a score of 9 out of 10, with both short-term and long-term trends rated as positive. The stock is trading close to 52-week highs with higher volume, features liked by the CAN SLIM method for finding stocks with ongoing upward movement. The fundamental analysis gives a rating of 6 out of 10, noting very good profit measures along with some small points about financial health, while stating the stock seems fairly priced considering its growth outlook.

Current Market Situation

With the S&P500 displaying positive trends in both short-term and long-term periods, the general market direction is good for the CAN SLIM way of investing in growth leaders during rising markets. Hudbay Minerals' strong relative performance during this time further confirms its leadership status.

Looking for Other Opportunities

For investors wanting to find other companies that fit CAN SLIM requirements, more screening results can be found using the pre-configured CANSLIM screener. This tool enables more personalization based on individual investment choices while keeping the main ideas of the CAN SLIM method.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance does not guarantee future results.