Evaluating PAN AMERICAN SILVER CORP (NYSE:PAAS) using Mark Minervini’s winning stock formula

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

Minervini Trend Template Analysis.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for PAAS:

• ✔ 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)

Why we can consider PAAS a High Growth Stock.

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. PAAS was assigned a score of 5 for growth:

Earnings Momentum

• In the most recent financial report, PAAS reported a 975.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• PAAS has experienced 618.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 21.73%, PAAS exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• The sales growth of PAAS is accelerating: the current Q2Q growth of 21.73% is above the previous quarter Q2Q growth of 16.19%. Sales momentum and acceleration are key for high growth systems.
• Sales acceleration happened 2 quarters in a row.
• PAAS has achieved significant 1-year revenue growth of 21.71%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.

Profitability & Financial Strength

• PAAS 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, PAAS 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 0.16 suggests that PAAS is managing its debt levels responsibly.

Institutional Confidence & Market Strength

• PAAS exhibits a favorable ownership structure, with an institutional shareholder ownership of 58.92%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• PAAS has exhibited strong Relative Strength(RS) in recent periods, with a current 93.64 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Looking at the Setup

The Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For PAAS this score is currently 3:

PAAS has an average technical rating and it also 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.

Check the latest full technical report of PAAS for a complete technical analysis.

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

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.