McEwen Mining Inc. (NYSE:MUX) has emerged from our latest stock screening based on the principles laid out in Louis Navellier’s "The Little Book That Makes You Rich." This strategy is not about chasing random hot stocks. Instead, it relies on eight specific, repeatable rules that focus on earnings quality, growth momentum, and financial strength. The central idea is that companies consistently surprising analysts with strong earnings, accelerating sales, and expanding profitability are often the ones best positioned for sustained price appreciation. By filtering for these fundamental characteristics, we aim to identify businesses that are not just growing, but doing so in a healthy, self-financing manner.
Recent Performance
McEwen Mining has posted exceptional operational results in the most recent reporting periods. A key pillar of the Little Book strategy is positive earnings surprises; the company has beaten analyst estimates in three of the last four quarters, with an average beat of 163.5%. This far exceeds the 10% average beat threshold we look for. When a company consistently surprises to the upside, as Navellier notes, it forces analysts to revise their future estimates upward, creating a strong tailwind for the stock.
This is reinforced by positive earnings revisions. Over the last three months, the average EPS estimate for the next quarter has been revised upward by 11.9% , well above our 4% minimum screen. Combined with the strong surprises, this suggests that McEwen’s underlying business momentum is being recognized by the market.
Valuation Metrics
Despite its strong growth, McEwen Mining does not appear overvalued. The company trades at a Price/Earnings (P/E) ratio of 14.98, which is significantly cheaper than the industry average and the S&P 500’s current P/E of roughly 26.5. Looking ahead, the Price/Forward Earnings ratio stands at 8.48, indicating the market is pricing in current earnings rather than overly optimistic future projections.
Navellier’s strategy does not advocate buying at any price, but the combination of cheap valuation and strong growth is particularly attractive. The PEG Ratio (based on forward earnings) is low, suggesting that the market has yet to fully price in the company’s growth trajectory. With earnings expected to grow at 36% annually, the current valuation provides a margin of safety for Little Book investors.
Analyst Views
The fundamental analysis report for McEwen Mining gives it a rating of 3 out of 10, which requires context. This score is pulled down by a weak financial health rating, driven by a low Altman-Z score (0.49) and a rising share count over the past year. However, the growth component scores a strong 7 out of 10.
Here is a breakdown of the key growth metrics that align with the Little Book criteria:
- Earnings Growth: EPS surged 275.8% over the past year (TTM), and the most recent quarter compared to the same quarter last year (Q2Q) showed growth of 485.8% .
- Sales Growth: Revenue is growing at a strong pace. The trailing twelve-month revenue growth is 39.6% , and the most recent quarter’s revenue (Q2Q) grew an astonishing 107.4% .
- Expanding Margins: The company’s operating margin grew by 74.7% over the past year, far exceeding the 2% hurdle. This indicates that McEwen is not just selling more, but is doing so more efficiently.
- Cash Flow: The Free Cash Flow growth over the past year was 63.4% , well above the required 15%.
- Return on Equity: At 11.4% , the ROE clears the 10% minimum.
You can review the full detailed fundamental analysis and rating breakdown here: McEwen Mining Fundamental Analysis Report.
Future Outlook
Navellier’s rules also require positive earnings momentum—meaning the current growth rate should be accelerating compared to the previous period. In McEwen’s case, the current Q2Q EPS growth of 485.8% is a significant acceleration from the same period two years ago (which was -140%). This confirms the trend is moving in the right direction. Looking forward, analysts expect earnings to grow at an average annual rate of 36% , while revenue is forecast to grow at 19.4% annually, indicating the acceleration is expected to continue.
Final Considerations
While McEwen Mining shines on growth and valuation, investors must weigh the financial health concerns noted in the report. The rising share count and relatively high debt-to-asset ratio are points to monitor. However, the company’s high cash flow generation and improving profitability suggest it has the resources to manage its obligations. For investors following the Little Book methodology, the combination of cheap valuation, explosive earnings surprises, and accelerating growth often outweighs short-term balance sheet noise, provided the underlying business momentum remains intact.
If you would like to run a similar screen or explore other opportunities, [you can find the full results of the Little Book screen here](https://www.chartmill.com/stock/stock-screener?sid=677&f=sl_roe_10_X,eps4_bm3,eps4_avga10,sl_rev1y_20_X,sl_revq2q_20_X,sl_omYGrowthTtm_2_X,sl_fcfYGrowthTtm_15_X,sl_epsq2q_15_X,sl_revNqEps3m_4_X,sl_eps1y_15_X,exch_us&v=23&s=ta&sd=DESC&cpl=2&bc=false&nw=1&o1=3&op1=200,16711680&o2=3&op2=50,255&o3=1&cf=(epsq2q%3EpEpsQ2Q)>.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions. Past performance is not a guarantee of future results.
Read full article here »
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McEwen Mining (NYSE:MUX) Shines in Navellier’s Little Book Screen with Explosive Growth and Low Valuation
McEwen Mining Inc. (NYSE:MUX) has emerged from our latest stock screening based on the principles laid out in Louis Navellier’s "The Little Book That Makes You Rich." This strategy is not about chasing random hot stocks. Instead, it relies on eight specific, repeatable rules that focus on earnings quality, growth momentum, and financial strength. The central idea is that companies consistently surprising analysts with strong earnings, accelerating sales, and expanding profitability are often the ones best positioned for sustained price appreciation. By filtering for these fundamental characteristics, we aim to identify businesses that are not just growing, but doing so in a healthy, self-financing manner.
Recent Performance
McEwen Mining has posted exceptional operational results in the most recent reporting periods. A key pillar of the Little Book strategy is positive earnings surprises; the company has beaten analyst estimates in three of the last four quarters, with an average beat of 163.5%. This far exceeds the 10% average beat threshold we look for. When a company consistently surprises to the upside, as Navellier notes, it forces analysts to revise their future estimates upward, creating a strong tailwind for the stock.
This is reinforced by positive earnings revisions. Over the last three months, the average EPS estimate for the next quarter has been revised upward by 11.9% , well above our 4% minimum screen. Combined with the strong surprises, this suggests that McEwen’s underlying business momentum is being recognized by the market.
Valuation Metrics
Despite its strong growth, McEwen Mining does not appear overvalued. The company trades at a Price/Earnings (P/E) ratio of 14.98, which is significantly cheaper than the industry average and the S&P 500’s current P/E of roughly 26.5. Looking ahead, the Price/Forward Earnings ratio stands at 8.48, indicating the market is pricing in current earnings rather than overly optimistic future projections.
Navellier’s strategy does not advocate buying at any price, but the combination of cheap valuation and strong growth is particularly attractive. The PEG Ratio (based on forward earnings) is low, suggesting that the market has yet to fully price in the company’s growth trajectory. With earnings expected to grow at 36% annually, the current valuation provides a margin of safety for Little Book investors.
Analyst Views
The fundamental analysis report for McEwen Mining gives it a rating of 3 out of 10, which requires context. This score is pulled down by a weak financial health rating, driven by a low Altman-Z score (0.49) and a rising share count over the past year. However, the growth component scores a strong 7 out of 10.
Here is a breakdown of the key growth metrics that align with the Little Book criteria:
You can review the full detailed fundamental analysis and rating breakdown here: McEwen Mining Fundamental Analysis Report.
Future Outlook
Navellier’s rules also require positive earnings momentum—meaning the current growth rate should be accelerating compared to the previous period. In McEwen’s case, the current Q2Q EPS growth of 485.8% is a significant acceleration from the same period two years ago (which was -140%). This confirms the trend is moving in the right direction. Looking forward, analysts expect earnings to grow at an average annual rate of 36% , while revenue is forecast to grow at 19.4% annually, indicating the acceleration is expected to continue.
Final Considerations
While McEwen Mining shines on growth and valuation, investors must weigh the financial health concerns noted in the report. The rising share count and relatively high debt-to-asset ratio are points to monitor. However, the company’s high cash flow generation and improving profitability suggest it has the resources to manage its obligations. For investors following the Little Book methodology, the combination of cheap valuation, explosive earnings surprises, and accelerating growth often outweighs short-term balance sheet noise, provided the underlying business momentum remains intact.
If you would like to run a similar screen or explore other opportunities, [you can find the full results of the Little Book screen here](https://www.chartmill.com/stock/stock-screener?sid=677&f=sl_roe_10_X,eps4_bm3,eps4_avga10,sl_rev1y_20_X,sl_revq2q_20_X,sl_omYGrowthTtm_2_X,sl_fcfYGrowthTtm_15_X,sl_epsq2q_15_X,sl_revNqEps3m_4_X,sl_eps1y_15_X,exch_us&v=23&s=ta&sd=DESC&cpl=2&bc=false&nw=1&o1=3&op1=200,16711680&o2=3&op2=50,255&o3=1&cf=(epsq2q%3EpEpsQ2Q)>.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions. Past performance is not a guarantee of future results.
Read full article here »