Why AG MORTGAGE INVESTMENT TRUST (NYSE:MITT) could fit Mark Minervini’s high-growth criteria

In this article we will dive into AG MORTGAGE INVESTMENT TRUST (NYSE:MITT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed AG MORTGAGE INVESTMENT TRUST showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

MITT passes the Minervini Trend Template check!

MITT 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)

Unpacking MITT's High Growth Momentum Rating

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. MITT has earned a 5:

Explosive Earnings Growth

• The EPS of MITT has exhibited growth from one quarter to another (Q2Q), with a 900.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• The earnings per share (EPS) growth of MITT is accelerating: the current Q2Q growth of 900.0% is above the previous quarter Q2Q growth of 221.0%. Earnings momentum and acceleration are key for high growth systems.
• EPS acceleration happened 2 quarters in a row.
• MITT has achieved 392.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• MITT has experienced 30.34% q2q revenue growth, indicating a significant sales increase.
• With impressive 1-year revenue growth of 56.92%, MITT showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• MITT has surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Profitability & Financial Strength

• With positive growth in its operating margin over the past year, MITT showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• With positive growth in its free cash flow (FCF) over the past year, MITT 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.

Strong Market Performance

• MITT has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 88.36 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Looking at the Setup

ChartMill also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, MITT exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, MITT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 7.32, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MITT in the last couple of days, which is a good sign.

Our latest full technical report of MITT contains the most current technical analsysis.

Concluding

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.