CIA DE MINAS BUENAVENTUR-ADR (NYSE:BVN) Emerges as a High-Growth Momentum Leader

Compañía de Minas Buenaventura SAA (NYSE:BVN) has appeared as a notable option for investors using a disciplined growth and momentum strategy. The stock was found through a screening process that joins Mark Minervini’s strict Trend Template with a High Growth Momentum (HGM) rating, a method made to find equities showing both good technical health and improving fundamental performance. This two-part method aims to find market leaders early in their growth path by confirming they are in strong uptrends while also showing noteworthy business momentum.

Meeting the Minervini Trend Template

The foundation of the selection process is the Minervini Trend Template, a group of technical rules that finds stocks in a confirmed Stage 2 uptrend. BVN meets these conditions, indicating a sound and lasting upward price trend.

• Price Above Key Moving Averages: The current price of $24.79 trades well above the rising 50-day ($19.91), 150-day ($16.89), and 200-day ($15.85) simple moving averages. This arrangement confirms that the stock is in a bull market phase across several timeframes.
• Moving Average Alignment: The 50-day moving average is located above both the 150-day and 200-day averages, while the 150-day average itself trades above the 200-day. This ordered, rising formation is a standard sign of good and increasing momentum.
• Proximity to Highs: The stock is currently trading within 3% of its 52-week high of $25.46, a main part of the Trend Template. Stocks close to new highs often have the strongest momentum and are frequently leaders in their sector.
• Significant Recovery: BVN’s price is about 115% above its 52-week low of $11.50, showing a strong recovery trend and considerable investor confidence.
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) rating of 93.16, BVN is doing better than 93% of all stocks in the market. Minervini points out that true market leaders show high relative strength, as they are the first to recover and lead in a market cycle.

This technical view is especially strong in the current setting where the S&P 500’s long-term and short-term trends are also positive, creating a supportive environment for leading stocks like BVN to do well.

Fundamentals Driving High Growth Momentum

Beyond a technically good chart, the strategy requires notable fundamental health, which is measured by a High Growth Momentum rating. BVN’s financial metrics show a company in the middle of a major earnings and operational recovery.

• Explosive Earnings Growth: The most recent full-year EPS grew by a remarkable 2,171%. Even on a trailing twelve-month (TTM) basis, EPS growth is at 424%. This type of sharp earnings increase is a main force behind what Minervini calls “superperformance,” as large earnings gains draw institutional interest.
• Strong Quarterly Momentum: The company has reported positive earnings surprises in three of the last four quarters, with an average beat of 97%. Quarterly EPS growth remains solid at 43% compared to the same quarter last year, showing the positive trend is continuing.
• Revenue Expansion and Margin Improvement: TTM revenue has grown by 32%, with the last quarter showing a 33% year-over-year increase. More significantly, the company has shown a major improvement in profitability, with the profit margin in the last reported full year increasing to 35%, up from just 2% in the prior year. This gain in margins points to better pricing power and operational efficiency, important factors for continued growth.
• Positive Analyst Revisions: Analysts have updated their EPS estimates for the next fiscal year upward by almost 15% over the last three months. Such positive updates often come before continued good performance, as they show improving analyst confidence in the company’s future.

Technical Health and Setup Assessment

According to the complete ChartMill Technical Report, BVN gets a top-level technical rating of 10 out of 10. This score shows a steady and strong performance across both short and long-term timeframes. The report states that the stock is in a positive long-term trend and is trading near its 52-week high, confirming its leadership position.

However, the report also gives an important detail for possible entry points. While the technical health is very good, the current Setup Quality rating is medium, scored at 5. This means that recent price movement has been somewhat unstable, making a perfect, low-risk entry point less obvious at this specific time. The analysis indicates that while BVN is a technically good stock, investors might gain from waiting for a time of consolidation to form before starting a full position, allowing for a better-defined risk/reward setup.

You can view the full, detailed technical report for BVN here.

Conclusion

Compañía de Minas Buenaventura SAA presents a notable case for investors following a high-growth momentum strategy. It successfully meets the strict technical filters of the Minervini Trend Template, confirming it is in a strong Stage 2 uptrend. Furthermore, its fundamentals are performing very well, with explosive earnings growth, improving profit margins, and positive analyst sentiment, all signs of a company with high growth momentum. The main point for investors is the timing of an entry, given the current instability noted in the setup rating.

For investors looking for more options that fit this specific profile of good technicals and high growth momentum, additional research can be done using the predefined screen.

Click here to discover more stocks that meet the High Growth Momentum and Trend Template criteria.

Disclaimer: This is not investment advice. The content is intended to be used for information and education purposes only. It is crucial to conduct your own research and consider your personal financial situation before making any investment decisions.