DRDGOLD LTD-SPONSORED ADR (NYSE:DRD) Emerges as a High-Growth Momentum Pick Using the Minervini Trend Template

A methodical way to choose stocks frequently joins strict technical filtering with basic growth measures to find possible leading companies. One strategy, made well-known by trader Mark Minervini, uses a defined "Trend Template" to sort for stocks showing solid, confirmed upward trends. This technical base is then combined with a review of a company's fundamental speed—namely, its increase in earnings, sales, and profit. The aim is to locate investments that are both technically good and showing the quickening business results that can support continued price gains. DRDGOLD LTD-SPONSORED ADR (NYSE:DRD) recently appeared from a filter made to use this exact thinking, matching the strict requirements of the Minervini Trend Template while also rating well on growth speed measures.

Reviewing the Technical Base: The Minervini Trend Template

The Minervini Trend Template is a group of fixed technical rules made to find stocks in a forceful Stage 2 upward move. It goes past simple price gains, requiring a particular arrangement of moving averages and price movement that shows continued institutional purchasing and a small chance of the trend stopping soon. For a stock like DRDGOLD, the template gives a clear, factual structure to judge its technical condition.

A look at DRD's chart and main measures shows it currently meets the central ideas of the Trend Template:

• Price Above Important Moving Averages: The present price trades well above the rising 50-day, 150-day, and 200-day simple moving averages (SMAs). This layered order shows positive speed across several time periods.
• Moving Average Order: The nearer-term 50-day SMA ($28.51) is placed above both the 150-day ($22.03) and 200-day ($20.26) SMAs, while the 150-day SMA also trades above the 200-day. This step-by-step order verifies a solid and arranged upward trend.
• Nearness to Highs: DRD's price is about 252% above its 52-week low of $8.62, showing major recovery and force. Also, it is trading within 13% of its 52-week high of $34.80, fitting with the template's focus on leaders that are moving toward new highs instead of bouncing back from large lows.
• Better Relative Performance: With a ChartMill Relative Strength (CRS) score of 98.49, DRD has done better than almost 99% of all stocks over the past year. This outstanding relative performance is a sign of market leadership, a key part of Minervini's method which looks for stocks that are performing better than the wider market.

This technical setup indicates DRD is in a verified long-term upward trend with solid speed, making it a subject for more study instead of a speculative low-price opportunity.

Judging the Growth Driver: High Growth Speed

While a good chart is necessary, the Minervini method stresses that the largest stock gains are nearly always backed by forceful fundamental quickening. A "High Growth Momentum" filter looks for proof of this quickening in key financial measures. DRD's recent performance shows it is in the middle of such a fundamental rise.

The company's latest financial reports show very fast growth, which gives the fundamental push that can maintain a technical breakout:

• Earnings Growth: DRD's earnings per share (EPS) growth is especially notable. Year-over-year EPS growth on a trailing twelve-month (TTM) basis is more than 141%. Even more notable is the newest three-month comparison, which shows EPS growth of over 203% compared to the same three months last year. This type of quickening profit growth is precisely what draws institutional interest.
• Solid Sales Growth: Sales growth is also notable, with TTM revenue up over 87% and the latest three-month sales growing by more than 141% year-over-year. This shows solid demand and pricing ability for its gold retreatment activities.
• Gaining Profitability: The company's profit margin in the last reported three months was 28.47%, a meaningful gain from 21.29% in the previous financial year. Increasing margins together with fast-rising sales is a forceful mix that greatly improves final results and investor feeling.
• Analyst Belief: The growth account seems to be getting notice. Analyst predictions for the next financial year's earnings have been adjusted higher by over 15% in the last three months, hinting at increasing belief in the company's short-term future.

This combination of fast-rising earnings, solid sales, growing margins, and positive estimate changes forms a fundamental "support" that backs the stock's good technical position. In Minervini's structure, these are the pushes that can change a solid trend into a major price rise.

Technical Condition Summary

Looking at a wider technical view, DRDGOLD's profile stays solid. The stock gets a complete ChartMill Technical Rating of 10/10, showing notable force across both short and long-term periods. The long-term trend is rated as good, and the stock does much better than others in its industry. However, it is important to see that the present Setup Quality rating is not as high, meaning the stock has been trading in a broader range lately and may not offer a quick, low-risk chance to buy. This indicates that while the trend is forcefully continuing, investors could look for a time of settling or a move back toward support levels (seen near $26.48 from recent price movement) for a better risk/reward chance to enter, if the fundamental account stays strong.

A more complete look at support, resistance, and volume study can be seen in the full ChartMill Technical Report for DRD.

Locating Comparable Chances

DRDGOLD shows the kind of investment that comes up when joining orderly trend-following with growth speed filters. For investors wanting to use this combined method to find other possible subjects, the ready-made filter that found DRD is ready to use. You can find more stocks that meet these "High Growth Momentum + Trend Template" rules by clicking here.

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Disclaimer: This article is for information and learning only. It is not investment guidance, a suggestion, or a deal to buy or sell any security. The study is based on present data and methods, which can change. Investing has risk, including the possible loss of the original amount. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.