ERO Copper Corp (NYSE:ERO) Combines High Growth Momentum with Bullish Technical Setup

For investors looking to join solid fundamental momentum with positive technical patterns, a layered screening method can be useful. One process uses filters for stocks that show a high growth momentum profile, marked by quickening earnings and sales, while also showing sound technical health and a helpful chart setup. This method tries to find companies where strong business results are meeting with a price chart ready for a possible extension of its upward move. ERO COPPER CORP (NYSE:ERO) appears from such a filter, offering a situation where notable growth measures meet a very high technical score.

Evaluating the Growth Momentum Profile

The High Growth Momentum (HGM) score combines different short-term fundamental momentum parts. For ERO Copper, a score of 6 shows a firm, better-than-average growth profile, pushed by several main measures that momentum investors focus on.

• Solid Sales Quickening: The company's latest quarterly sales increased 41.86% year-over-year. More significantly, this shows a clear quickening from the growth rates of 39.64% and 18.24% seen in the two prior quarters. This sequence of rising sales growth is a standard mark of positive business momentum.
• Large Projected Earnings Increase: While recent year-over-year EPS growth has varied, analyst projections point to a major rise coming. The general forecast for the next quarter expects earnings growth of 473.38% compared to the same quarter last year, showing solid forward momentum expectations.
• Sound Cash Flow Creation: Free cash flow per share has increased by a notable 115.56% over the past year, proving the company's skill in turning its operational results into actual cash.
• Positive Analyst Changes: Backing the hopeful view, analysts have been increasing their estimates. The average EPS estimate for the next fiscal year has been changed upward by 5.68% over the last three months.

These parts together create a view of a company showing operational force, with quickening top-line growth and optimistic expectations for bottom-line growth ahead, central ideas of the high growth momentum view.

Technical Force and Setup Condition

While the fundamental momentum gives the "why," the technical view gives the "when" and "how." According to the detailed ChartMill Technical Analysis Report, ERO Copper does very well here, getting a top-level Technical Score of 10 and a high Setup Score of 8.

The technical force is wide:

• Both the long-term and short-term trends are scored as positive.
• The stock is trading close to its 52-week high and does better than 96% of all stocks over the past year.
• It is placed above all main moving averages (20, 50, 100, and 200-day), which are all in a rising arrangement.

Maybe more important for an entry review is the setup condition. The report states that prices have been moving sideways recently, making a possible bull flag shape after a solid upward move. This sideways movement has made a specific support area between $29.52 and $29.97, which is created by a mix of trendlines and moving averages. The existence of this support area below the present price allows for a clear and reasonable place to set a protective stop-loss order, a main part of risk control in breakout trading. The setup is further backed by a stated rise in trading volume and a recent "Pocket Pivot" signal, which points to buying interest.

Meeting of Momentum and Timing

The argument for ERO Copper within this method depends on the meeting of its traits. The high growth momentum score confirms the company is not just a fixed value choice but is showing active, getting-better fundamentals that can support more price gains. This answers the "which stock" question for growth-focused investors.

At the same time, the outstanding technical score confirms the market is already seeing this force, as shown by the solid long-term upward trend. The high setup score then answers the "when" question, finding a possible halt or drop within that upward trend that may give a more planned entry point, with specific risk limits, before a possible next step higher.

Locating Related Chances

The filtering method that found ERO Copper can be used in a regular way to find other possible choices where solid growth momentum lines up with positive technical setups. Investors wanting to see a current list of stocks that fit similar conditions of a Setup Score >7, a TA Score >7, and a High Growth Momentum Score >4 can view the ready-made High Growth Momentum Breakout Setups Screen.

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Disclaimer: This article is for information only and is not investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and shows conditions at a specific time. Investing has risk, including the chance of loss of original money. Always do your own research, think about your money situation and risk comfort, and talk with a qualified money advisor before making any investment choices. The note of specific securities or methods is not a support of their future results.