For investors looking to join solid technical trends with solid fundamental growth, a methodical method can be useful. One such method is supported by well-known trader Mark Minervini, whose SEPA (Specific Entry Point Analysis) plan joins a strict technical checklist, the Trend Template, with strict fundamental tests for earnings and sales momentum. This two-step method works to find market leaders early in their large price gains, concentrating on stocks that are both in solid uptrends and supported by improving business results. A recent filter using this joined view has pointed to ARIS MINING CORP (NYSEARCA:ARMN) as a candidate worth more study.
Looking at the Technical Base: The Minervini Trend Template
The Minervini Trend Template is made to filter for stocks showing clear, maintained uptrends, making sure an investor is moving with the current momentum. For a stock to pass, it must fit a set of fixed technical rules. ARMN seems to meet these important rules, placing it in a positive Stage 2 gain.
- Moving Average Order: The stock's present price is above its rising 50-day, 150-day, and 200-day simple moving averages (SMAs). Importantly, the shorter-term averages are lined up above the longer-term ones (50-day > 150-day > 200-day), a standard sign of a sound uptrend.
- Nearness to Highs: A central idea of the plan is to concentrate on strength, not searching for low prices. ARMN's price is now within 25% of its 52-week high of $21.98 and is a large 398% above its 52-week low of $3.57, showing solid recovery and momentum.
- Better Relative Strength: Maybe most notably, ARMN has a ChartMill Relative Strength (CRS) ranking of 99.12. This means it has done better than almost 99% of all stocks over the past year, a sign of market leadership that Minervini states is key for strong performance.
This technical setup indicates the stock is under maintained accumulation and is acting as a leader in its sector.
Checking the Growth Driver: High Growth Momentum (HGM) Measures
While a solid chart is necessary, Minervini's plan requires it must be supported by fundamental improvement. The "High Growth Momentum" part of the filter looks for proof of fast and improving profitability. ARMN's recent financial measures show a time of notable operational improvement.
- Earnings Improvement: The company is showing notable year-over-year earnings per share (EPS) growth. The newest quarter showed a rise of 350%, after growth of 238% and 300% in the two earlier quarters. This sequence of improving, triple-digit EPS growth is exactly the type of fundamental driver the plan looks for.
- Profit Margin Growth: Improving margins show pricing ability and operational efficiency. ARMN's profit margin in the last reported quarter was 16.3%, a notable recovery from 1.5% two quarters before and 4.8% for the last full fiscal year. This growth supports the quality of the earnings growth.
- Sales Growth Support: The top-line story is also solid, with recent quarterly revenue growth of 91.6% and 73.6% in the earlier quarter. This confirms that earnings growth is not only from cost-cutting but is supported by growing business activity.
This joining of rising earnings on growing margins, supported by solid sales growth, gives the fundamental "large earnings" story that draws institutional notice and can push continued price gain.
Technical Condition and Setup Summary
Beyond the specific Trend Template filters, a wider technical study of ARMN supports its solid position. ChartMill's own Technical Rating gives the stock a full score of 10 out of 10, noting a "consistent performance in both the short and longer term time frames." The long-term trend is rated as positive. The report also finds several clear support levels below the present price, which can help set risk limits.
However, it is useful to note that the short-term trend is now neutral, and the stock has been trading in a wide band over the past month, now near the lower part of that band. While the long-term setup is seen as acceptable, this near-term pause suggests investors should be aware of entry timing, preferably looking for positive price action within the set uptrend. A detailed look at the technical picture, including specific support and resistance areas, is found in the full ChartMill Technical Report for ARMN.
Conclusion
ARIS MINING CORP shows a notable example of a stock that fits a disciplined growth-and-momentum investment structure. It passes the strict technical filters of the Minervini Trend Template, showing leadership-level relative strength within a clear long-term uptrend. Fundamentally, it is showing the type of fast, improving earnings and margin growth that usually supports maintained stock price gains. For investors using a plan that puts both technical condition and fundamental momentum first, ARMN justifies more study.
This study comes from a set filter that looks for such joined chances. Investors wanting to see other stocks that now meet this joined "High Growth Momentum + Trend Template" rules can view the results using the dedicated filter link.
Disclaimer: This article is for informational and educational purposes only. It is not intended as investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis is based on data provided and certain filtering methods, which have inherent limits. Investors should do their own full research, think about their personal financial situation, and talk with a qualified financial advisor before making any investment decisions. Past performance is not a guide to future results.
