Why Mark Minervini may look into CENTURY ALUMINUM COMPANY (NASDAQ:CENX)

Our stock screener has spotted CENTURY ALUMINUM COMPANY (NASDAQ:CENX) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

CENX passes the Minervini Trend Template check!

CENX 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)

Assessing Growth for CENX

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. CENX boasts a 4 out of 10:

Explosive Earnings Growth

• The EPS of CENX has exhibited growth from one quarter to another (Q2Q), with a 25.64% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• The 1-year EPS growth of CENX (255.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• CENX has demonstrated strong q2q revenue growth of 23.17%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• Accelerating Sales growth for CENX: the current Q2Q growth of 23.17% exceeds the previous quarter Q2Q growth of -1.12%.
• Sales acceleration happened 3 quarters in a row.
• Over the past 3 months, analysts have adjusted their EPS Estimate for CENX with a 40.0% change. This highlights the evolving outlook on the company's EPS potential.

Financial Strength & Profitability

• With positive growth in its operating margin over the past year, CENX 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.
• CENX exhibits a strong Return on Equity (ROE) of 45.24%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a Debt/Equity ratio of 0.64, CENX demonstrates prudent financial management.

Institutional Confidence & Market Strength

• With 58.39% of the total shares held by institutional investors, CENX showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• CENX has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 93.17 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Why is CENX a setup?

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. CENX currently has a 8 as setup rating:

Besides having an excellent technical rating, CENX 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 19.30, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CENX in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

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

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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

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.