For investors looking to join solid fundamental growth with positive technical patterns, a multi-layered screening method can be especially effective. One useful technique involves selecting for stocks that show firm earnings momentum, a central idea of high-growth investing, while also showing the technical soundness and consolidation shapes that frequently come before notable price movements. This tactic seeks securities that have both the fundamental driver for growth and are also technically set for a possible breakout. A recent screen using this method, searching for a ChartMill High Growth Momentum Rating above 4, a Technical Rating above 7, and a Setup Rating above 7, has found KINROSS GOLD CORP (NYSE:KGC) as a candidate worth more detailed review.
Fundamental Growth Momentum
The heart of the high-growth momentum tactic is finding companies with speeding up business results, and Kinross Gold shows several strong metrics here. The company's financial statements show a time of marked enlargement and gaining profitability.
- Earnings Speed Increase: Kinross has reported outstanding year-over-year EPS growth in the latest quarters, with numbers of 83.3%, 214.3%, and 200.0% over the past three reporting periods. This sequence of firm, and in some cases quickening, quarterly growth is a main force behind its good High Growth Momentum Rating of 7.
- Firm Annual Growth: On a trailing twelve-month (TTM) basis, EPS has jumped by about 134%, while revenue has increased by almost 33%. This shows the firm quarterly performance is becoming sustained yearly gain.
- Gaining Profitability: Possibly as key as top-line growth is the bottom-line efficiency. Kinross's profit margin in the newest quarter was 30.7%, a clear enlargement from 24.6% and 19.5% in the two quarters before. This direction of margin enlargement is a vital part of the momentum rating, showing not just more revenue, but more profitable revenue.
- Analyst Belief: The fundamental view is further supported by analyst feeling. Over the past three months, the average estimate for next year's EPS has been adjusted upward by roughly 16%, hinting at increasing positive outlook about the company's future earnings possibility.
These items together create a view of a company in a strong growth stage, which is exactly what the High Growth Momentum Rating is made to find. The rating combines these parts—growth, speed increase, margin enlargement, and positive adjustments—into one score, helping investors sort through the clutter to find companies with fundamental momentum.
Technical Soundness and Setup Condition
While sound fundamentals give the "why" for a stock's possibility, technical study helps find the "when" for a possible entry. According to Kinross Gold's detailed technical report, the stock does very well in this area too, getting a perfect Technical Rating of 10 and a Setup Rating of 8.
The technical report points out a stock in a strong uptrend. Both the long-term and short-term trends are graded as positive, with the price trading well above important moving averages (20, 50, 100, and 200-day SMAs), all of which are climbing. This soundness is not happening alone; the stock's relative strength is outstanding, doing better than 97% of all stocks in the market over the past year. Such consistent technical soundness is uncommon and shows continued buying pressure and market leadership.
The high Setup Rating of 8 indicates a positive chart shape for traders. The report states that prices have been consolidating recently with lower volatility, making a base after a firm upward move. A clear resistance area is noted just above the current price at $28.60, with a support area below near $28.34. This narrow trading range near resistance, after a time of accumulation (including a recent "Pocket Pivot" signal), creates a specific, lower-risk setup. A clear move above the $28.60 resistance could show the next part of the uptrend, with a sensible stop-loss level just below support.
A Coming Together of Items
Kinross Gold Corp presents a situation where fundamental momentum and technical readiness seem to be coming together. The company is showing explosive earnings growth and gaining profitability, meeting the central standards wanted by high-growth investors. At the same time, its chart shows a stock in a strong uptrend that has paused to consolidate, giving a clear shape for those searching for a possible technical entry point. This alignment is what the joined screening tactic tries to discover: companies with the fundamental driver to push price gain that are also technically set to make their next move.
Interested in reviewing other stocks that meet this mix of high-growth fundamentals and sound technical setups? You can run the screen yourself using this High Growth Momentum Breakout Setups Screen.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data provided and reflects conditions at a specific point in time. 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. Past performance is not indicative of future results.
