Is NYSE:AGI on the Verge of a Major Breakout as a Strong Growth Stock?

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether ALAMOS GOLD INC-CLASS A (NYSE:AGI) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but ALAMOS GOLD INC-CLASS A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

What does the Growth looks like for NYSE:AGI

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:AGI was assigned a score of 9 for growth:

• AGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.83%, which is quite impressive.
• Measured over the past years, AGI shows a very strong growth in Earnings Per Share. The EPS has been growing by 60.35% on average per year.
• Looking at the last year, AGI shows a very strong growth in Revenue. The Revenue has grown by 24.61%.
• The Revenue has been growing by 9.44% on average over the past years. This is quite good.
• Based on estimates for the next years, AGI will show a very strong growth in Earnings Per Share. The EPS will grow by 33.20% on average per year.
• AGI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.15% yearly.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Health Analysis for NYSE:AGI

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:AGI, the assigned 6 for health provides valuable insights:

• AGI has an Altman-Z score of 3.57. This indicates that AGI is financially healthy and has little risk of bankruptcy at the moment.
• AGI has a Altman-Z score of 3.57. This is in the better half of the industry: AGI outperforms 61.54% of its industry peers.
• The Debt to FCF ratio of AGI is 1.45, which is an excellent value as it means it would take AGI, only 1.45 years of fcf income to pay off all of its debts.
• AGI has a Debt to FCF ratio of 1.45. This is amongst the best in the industry. AGI outperforms 81.82% of its industry peers.
• A Debt/Equity ratio of 0.08 indicates that AGI is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.08, AGI is in the better half of the industry, outperforming 62.24% of the companies in the same industry.
• AGI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

How do we evaluate the Profitability for NYSE:AGI?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:AGI, the assigned 8 is noteworthy for profitability:

• With a decent Return On Assets value of 4.61%, AGI is doing good in the industry, outperforming 76.22% of the companies in the same industry.
• AGI's Return On Equity of 6.95% is fine compared to the rest of the industry. AGI outperforms 70.63% of its industry peers.
• With a decent Return On Invested Capital value of 6.72%, AGI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
• The last Return On Invested Capital (6.72%) for AGI is above the 3 year average (5.43%), which is a sign of increasing profitability.
• The Profit Margin of AGI (19.89%) is better than 90.21% of its industry peers.
• AGI's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 34.13%, AGI belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
• AGI's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 45.64%, AGI belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
• In the last couple of years the Gross Margin of AGI has grown nicely.

How do we evaluate the setup for NYSE:AGI?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:AGI is 8:

Besides having an excellent technical rating, AGI also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 22.67, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for AGI in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of AGI

For an up to date full technical analysis you can check the technical report of AGI

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.