For investors looking to join strong earnings momentum with positive chart patterns, a multi-layered screening method can be especially effective. One useful technique uses filters for stocks that show a high-growth fundamental profile while also displaying a constructive technical arrangement. This method tries to find companies not just seeing quickening business results but also trading in a way that hints at a possible near-term price rise. Important filters often contain a solid High Growth Momentum (HGM) rating, which catches short-term earnings speed and estimate changes, paired with strong Technical (TA) and Setup ratings, which measure the stock's trend condition and consolidation quality, in that order.
KINROSS GOLD CORP (NYSE:KGC) appears from such a screen, presenting a noteworthy case for examination by growth-focused investors. The company, a senior gold producer with a worldwide collection of mines and development projects, is showing the sort of operational and financial speed that forms the base of this method.
Fundamental Growth Momentum
Kinross Gold receives a High Growth Momentum Rating of 7, a score that shows force across several important growth and momentum measures needed for this investing style. The rating combines recent performance, future outlooks, and analyst opinion.
- Earnings Speed: The company has reported outstanding year-over-year EPS growth in recent quarters, with numbers of 200%, 214%, and 83% over the last three reporting periods. This sequence of major increase is a central idea of momentum investing, signaling strong operational leverage.
- Profit Margin Improvement: A vital part of lasting growth is widening profitability. Kinross shows clear advance here, with its quarterly profit margin getting better from 19.5% to 30.7% over the last four quarters. This direction hints the company is successfully turning higher revenues into bottom-line earnings.
- Solid Forward Estimates: The growth story is backed by analyst forecasts. Estimates for the next quarter predict year-over-year EPS growth of 188% and sales growth of 43%. Also, analysts have been adjusting their full-year EPS estimates higher by almost 12% over the last three months, signaling increasing belief in the company's near-term outlook.
- Solid Annual Growth: On a trailing twelve-month basis, Kinross has increased its EPS by 134% and revenue by 33%, giving a firm base of confirmed growth upon which the quarterly momentum is established.
Technical Force and Setup Condition
While fundamental momentum is key, the technical view gives the setting for entry. According to the detailed technical report, Kinross Gold has a perfect Technical Rating of 10, the top possible score.
- Strong Uptrend: The stock is in a confirmed long-term positive trend, doing better than 97% of the market over the past year. It trades well above all main moving averages (20, 50, 100, and 200-day), which are all rising, a classic sign of continued bullish momentum.
- Sector Outperformance: Within the competitive Metals & Mining industry, KGC is a frontrunner, doing better than 78% of its peers. This relative force is a main filter for momentum methods, as it finds companies pulling capital in their sector.
- Consolidation and Setup: With a Setup Rating of 7, the chart displays a time of recent consolidation after its strong upward move. The technical analysis states that prices have been trading in a range, letting the stock absorb its gains. This forms a possible base for a new move upward. The report finds a clear support area near $32.09, giving a sensible level for risk management, while stating very little immediate resistance above.
A Merging Chance
The merging of Kinross Gold's high-growth fundamental profile and its technically sound, well-arranged chart is what makes it notable for this method. The HGM rating verifies the company is in the middle of a strong earnings growth cycle with positive analyst opinion. At the same time, the excellent TA and Setup ratings signal the market has acknowledged this force, moving the stock into a leading spot, and has now halted in a consolidation that may come before a further breakout.
This pairing tackles the twin questions of which stock to examine and when to examine it. The growth measures answer the "why," while the technical setup helps find a possible "when" for entry, with clear risk levels.
For investors wanting to find other securities that meet this mix of high-growth momentum and technical breakout arrangements, the screen that found Kinross Gold can be found here: High Growth Momentum Breakout Setups Screen. This tool regularly searches the market for similar merging chances.
Disclaimer: This article is for informational purposes only and does not form investment advice, a suggestion, or an offer or solicitation to buy or sell any securities. The analysis is based on given data and should not be the only foundation for any investment choice. Investing includes risk, including the possible loss of principal. Always do your own research and think about talking with a qualified financial advisor before making any investment choices. Past performance is not a guide for future results.
