For investors looking to join the ideas of growth momentum with exact technical timing, a particular screening method can be very useful. This method sorts for stocks that show firm basic earnings and sales momentum, traits valued by growth investors, while also showing a helpful technical chart shape that indicates a possible starting point. The aim is to find companies where strong basic speed is matching with a technical picture that reduces possible loss, giving a combination of elements that can come before large price changes.
BARRICK MINING CORP (NYSE:B) appears as a choice that matches this two-part plan. The company, a leading worldwide gold and copper producer with a group of mines in the Americas, Africa, and the Middle East, is now showing a clear match of getting better basics and sound technical condition.
Basic Growth Momentum
The heart of a strong-growth momentum plan is in finding companies with speeding-up business results. Barrick's latest financial measures show a number of good directions that add to its firm High Growth Momentum Rating.
- Earnings Speed Increase: The company's three-month earnings per share (EPS) growth has shown large year-over-year gains. The latest three-month period reported a 93.3% rise compared to the same time last year, after earlier periods of 46.9% and 84.2% growth. This series of firm, one-after-another increase is a main sign of good momentum.
- Firm Yearly Growth: On a trailing twelve-month (TTM) basis, EPS has grown by over 72%, while money received has gone up by more than 18%. This shows the growth is not only a single-period event but part of a continuing upward direction.
- Growing Profitability: Maybe more key, Barrick's profit margin has been growing. The margin in the last reported period was 31.4%, a large gain from 22.0% and 15.1% in the two earlier periods. Growing margins mean the company is not only increasing sales but is becoming more effective and profitable, a strong mix for earnings growth.
- Analyst Trust: The basic view is supported by analyst changes, with the average guess for next year's EPS being changed upward by over 9% in the last three months. This outside agreement is a key part of the momentum idea, as it shows increasing positive feeling about future results.
These elements, firm and speeding-up EPS growth, growing margins, and good guess changes, are exactly what the High Growth Momentum Rating tries to find, indicating a company in a time of basic gain.
Technical Soundness and Picture Quality
While firm basics give the "why," technical study helps answer the "when." According to the full technical report, Barrick's chart shows a strong case for a possible breakout picture.
- Outstanding Technical Condition: Barrick gets a complete Technical Rating of 10 out of 10. This number shows a steady and strong upward direction across both short and long time frames. The stock is trading near its 52-week high and does better than 96% of all stocks in the market over the past year, a clear sign of leading position.
- Helpful Pause: After a firm upward move, the stock is now in a pullback time, which has made what the study calls a bull flag shape. This is a common continuing shape where the price holds in a narrow range on lower trading amount after a fast rise, often coming before the next step up. The current Setup Rating of 7 agrees with this pause, noting that price movement has gone down and a clear support area has been set.
- Set Risk Limits: The technical study finds a firm support area between $39.97 and $40.01, made by a meeting of trendlines. This gives a reasonable area to place a protective stop-loss order, setting the risk of a trade if the expected breakout does not happen. The report notes there is very little close resistance above the present price, meaning a clear way upward if buying force returns.
A Meeting Chance
The case for Barrick Mining Corp within this joined plan is clear. On one side, the company is showing the signs of basic momentum: speeding-up earnings, growing margins, and increasing analyst hopes. On the other side, the stock's price movement shows this soundness, trading in a leading long-term upward direction and now pausing in a shape that often comes before more gains. This meeting means the basic story is being seen by the market, and the technical picture gives an organized way to possibly take part in its continuing.
For investors wanting to find other stocks that meet this mix of high growth momentum and usable technical pictures, the screening method used to find Barrick can be copied. You can look for more possible choices by using the High Growth Momentum Breakout Setups screen.
Disclaimer: This article is for information only and does not make up investment guidance, a suggestion, or an offer to buy or sell any security. The study is based on given information and should not be the only base for an investment choice. Investors should do their own full check and think about their personal money situation and risk comfort before making any investment. Past results are not a sign of future results.
