PAN AMERICAN SILVER CORP (NYSE:PAAS) has emerged as a compelling candidate for investors following Mark Minervini’s trend-following strategy while also meeting high-growth momentum criteria. The stock exhibits strong technical trends and robust earnings growth, making it worth a closer look.
Why PAAS Fits the Minervini Trend Template
The Minervini Trend Template identifies stocks with strong uptrends and momentum. PAAS meets all key criteria:
Price Above Key Moving Averages: The stock trades above its 50-day ($26.06), 150-day ($24.21), and 200-day ($23.69) moving averages, confirming a bullish trend.
Moving Averages Trending Up: Both the 150-day and 200-day MAs are rising, indicating sustained upward momentum.
Relative Strength: With a ChartMill Relative Strength score of 88.37, PAAS outperforms 88% of all stocks.
Price Near 52-Week High: At $28.68, PAAS is within 3.3% of its 52-week high ($29.66), a sign of strong momentum.
Stage 2 Uptrend: The stock has advanced 44% over the past year, demonstrating a clear stage 2 uptrend.
High Growth Momentum (HGM) Qualities
PAAS also stands out with strong earnings and revenue growth, key factors for high-growth investors:
Explosive Earnings Growth:
EPS (TTM) surged 5,900% YoY.
Quarterly EPS growth of 4,100% (latest quarter) and 975% (prior quarter).
Full-year EPS growth of 618% in the most recent fiscal year.
Revenue Expansion:
Revenue (TTM) grew 18.3% YoY.
Quarterly sales increased 28.6% in the latest quarter.
Improving Profit Margins:
Profit margin expanded to 21.8% in the latest quarter, up from 13.2% in the prior quarter.
Free cash flow per share grew 324.8% YoY.
Technical Outlook
PAAS currently holds a perfect 10/10 technical rating from ChartMill, supported by:
A bull flag pattern, suggesting potential continuation of the uptrend.
Strong support near $28.39-$28.67, providing a clear stop-loss level.
Resistance around $28.87-$29.35, with a breakout above $29.36 potentially signaling further upside.