Is ALAMOS GOLD INC-CLASS A (NYSE:AGI) a Minervini-style stock?

In this article we will dive into ALAMOS GOLD INC-CLASS A (NYSE:AGI) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ALAMOS GOLD INC-CLASS A showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

A Technical Analysis using the Minervini Trend Template.

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

• ✔ 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)

ChartMill's Evaluation of Growth

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. AGI has earned a 7:

Explosive Earnings Growth

• The earnings per share (EPS) of AGI have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 108.0% increase. This reflects the company's ability to improve its profitability over time.
• The earnings per share (EPS) growth of AGI is accelerating: the current Q2Q growth of 108.0% is above the previous quarter Q2Q growth of 35.71%. Earnings momentum and acceleration are key for high growth systems.
• AGI has achieved 52.83% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• AGI has experienced 47.6% q2q revenue growth, indicating a significant sales increase.
• Accelerating Sales growth for AGI: the current Q2Q growth of 47.6% exceeds the previous quarter Q2Q growth of 40.87%.
• Sales growth accelerated for 3 quarters in a row.
• With impressive 1-year revenue growth of 31.62%, AGI showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.

Profitability & Financial Strength

• With a favorable trend in its operating margin over the past year, AGI demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• In the past year AGI has expanded its Profit Margin, which demonstrates increasing profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, AGI 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.
• AGI's Debt/Equity ratio of 0.08 suggests a healthy balance between debt financing and shareholder equity.

Market Strength & Institutional Confidence

• With institutional shareholders at 73.01%, AGI demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• The Relative Strength (RS) of AGI has consistently been strong, with a current 97.14 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

How does the Setup look for AGI

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, AGI exhibits a 2 setup rating, indicating its consolidation status in recent days and weeks.

Although AGI has an excellent technical rating, it does not present a decent entry opportunity 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.

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

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

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.