Is IAMGOLD CORP (NYSE:IAG) following the Minervini trend for explosive growth?

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

IAG passes the Minervini Trend Template check!

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

• ✔ 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)

High Growth Assessment of IAG

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. IAG scores a 6 out of 10:

Earnings Momentum

• The EPS of IAG has exhibited growth from one quarter to another (Q2Q), with a 66.67% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Over the past year, IAG has demonstrated 817.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• IAG has experienced 122.0% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• IAG has demonstrated strong q2q revenue growth of 57.9%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• With notable 1-year revenue growth of 65.43%, IAG exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• IAG has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Profitability & Financial Strength

• The operating margin of IAG has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• The profit margin of IAG has seen steady growth over the past year, signaling improved profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, IAG 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.
• With a favorable Return on Equity (ROE) of 24.56%, IAG demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• With a Debt/Equity ratio of 0.34, IAG maintains a solid financial position with controlled leverage.

Institutional Confidence & Market Strength

• The ownership composition of IAG reflects a balanced investor ecosystem, with institutional shareholders owning 66.11%. This indicates a broader market participation and potential for increased trading liquidity.
• The Relative Strength (RS) of IAG has consistently been strong, with a current 95.99 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Why is IAG a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. IAG scores a 7 out of 10:

Besides having an excellent technical rating, IAG also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 5.98, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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

Final Thoughts

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

Keep in mind

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.