IDAHO STRATEGIC RESOURCES INC (NYSEARCA:IDR) Combines High Growth Momentum with Bullish Technical Setup

For investors looking to join solid earnings momentum with positive chart patterns, a particular screening method can be useful. This process selects for stocks showing firm fundamental growth traits, measured by a High Growth Momentum Rating, while also showing technical soundness and a possible breakout formation, shown by high Technical and Setup Ratings. This combination tries to find companies where quickening business results match helpful price movement, possibly marking the extension of an upward trend.

IDAHO STRATEGIC RESOURCES INC (NYSEARCA:IDR) results from such a screen, offering a case for examination by growth-focused investors. The company, a gold, silver, and base metals explorer and developer working mainly in Idaho, has shown notable operational advancement that is seen in its financial numbers.

High Growth Momentum Fundamentals

The center of the high growth momentum plan is to find companies with quickening business directions. IDR’s fundamental picture shows several main positives that add to its rating:

• Large Revenue and Earnings Growth: The company has reported a trailing twelve-month (TTM) revenue growth of 88.66% and an EPS growth of 39.22%. More notably, recent three-month sales growth has been very firm, with the latest three months showing an 80.09% year-over-year rise.
• Increasing Profitability: A vital part of lasting growth is margin improvement. IDR’s profit margin in its last reported full year was 34.30%, a notable gain from 8.48% in the year before. This shows the company is not only growing the top line but is also turning more revenue into net income.
• Positive Earnings Surprises: The company has exceeded EPS estimates in two of the last four three-month periods and revenue estimates in three, with an average revenue beat of almost 5%. This steady outperformance against forecasts can support positive feeling and analyst updates.
• Firm Cash Flow Generation: Free cash flow per share has increased by over 408% in the past year, moving from a very small base to a positive $0.26 per share (TTM). This bettering cash production is important for funding exploration and development without too much dilution or debt.

While growth in the latest three months has slowed from the very high rates seen before, the full picture is of a company changing from a pure explorer to a more settled producer with good and bettering fundamentals.

Technical Strength and Setup Quality

A firm fundamental story is most effective when supported by the price chart. According to the detailed ChartMill Technical Report, IDR shows very good technical soundness together with a clear setup formation.

• Perfect Technical Rating: IDR receives a top score of 10 for its technical rating. This is supported by positive long-term and short-term directions, with the stock trading above all main moving averages (20, 50, 100, and 200-day). It also shows better relative strength, doing better than 98% of all stocks in the market over the past year.
• Consolidation Within an Uptrend: The stock is currently showing a setup rating of 7. This indicates it is consolidating its recent gains within the frame of a strong upward trend. The report notes the stock has been trading in a range between $28.20 and $41.13 over the past month and is currently testing the upper limit.
• Clear Risk and Reward Levels: The technical study finds definite support and resistance areas. A main support zone lies between $35.52 and $36.46, made by a combination of moving averages and trendlines. Immediate overhead resistance is noted near $40.58. This formation allows for a careful trading method, where a breakout above resistance could mark a new step upward, with a reasonable stop-loss level below support.

This technical picture fits with the momentum plan's need for stocks in confirmed upward trends that are pausing, possibly giving a lower-risk entry point before a restart of the trend.

Conclusion

IDAHO STRATEGIC RESOURCES INC shows a meeting of fundamental momentum and technical strength. For investors using a high growth momentum plan, the company's notable revenue growth, margin gain, and cash flow increase give the needed earnings base. At the same time, its flawless technical rating and helpful consolidation formation give a chart setup that tries to measure entry and risk factors. The mix tries to align the forces of bettering business performance with positive market feeling.

Interested in finding more stocks that fit this high-growth, strong-setup picture? You can run the screen yourself using the High Growth Momentum Breakout Setups screen on ChartMill.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis is based on data provided and should not be the sole basis for any investment decision. All investing involves risk, including the potential loss of principal. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment decisions.