METALLA ROYALTY & STREAMING (NYSEARCA:MTA) Fits the Minervini Trend Template for High-Growth Momentum

Identifying High-Growth Candidates Using the Minervini Trend Template

Mark Minervini’s Trend Template is a method to find stocks in strong uptrends, using both technical and fundamental factors to highlight promising opportunities. The approach focuses on stocks showing strong price movement, high relative performance, and alignment with important moving averages. For those looking for growth, the method also includes fundamental growth measures to confirm the company has increasing earnings or revenue.

One stock that fits this model is METALLA ROYALTY & STREAMING (NYSEARCA:MTA), a company that buys and manages precious metal royalties and streams. Below, we look at why MTA matches Minervini’s criteria and why it might interest growth-focused investors.

Why MTA Fits the Minervini Trend Template

The Minervini Trend Template has eight key technical requirements, all of which MTA currently meets:

1. Price Above Key Moving Averages

   • MTA is trading above its 50-day ($3.95), 150-day ($3.28), and 200-day ($3.21) moving averages, showing a positive trend across different timeframes.
   • The 50-day MA is above both the 150-day and 200-day MAs, indicating stronger momentum.

2. Upward-Sloping Moving Averages

   • Both the 150-day and 200-day moving averages are rising, supporting a long-term positive outlook.

3. Strong Price Performance Relative to 52-Week Range

   • MTA is trading 75.6% above its 52-week low ($2.45) and within 2.5% of its 52-week high ($4.42), reflecting steady upward movement.

4. High Relative Strength

   • With a relative strength (RS) score of 93.28, MTA performs better than 93% of all stocks, a sign of market leadership.

These technical factors suggest MTA is in a clear Stage 2 uptrend, a key part of Minervini’s approach.

Growth Fundamentals Supporting the Case

Beyond technicals, Minervini’s method highlights strong earnings and revenue growth as drivers for continued price gains. MTA shows several positive growth signs:

• Earnings Growth Acceleration

  • EPS growth over the past year (TTM) is 70.6%, with steady quarterly improvements (50% in the latest quarter, 66.7% in the prior quarter).
  • Analysts predict 117% EPS growth for the next quarter, suggesting ongoing strength.

• Revenue Expansion

  • Revenue growth (TTM) is 30.4%, with the most recent quarter showing 37.1% year-over-year growth.
  • Future revenue estimates point to further growth, with next-quarter sales expected to rise 170.7%.

While the company is not yet profitable on a trailing basis, the improving earnings trend and strong revenue growth fit Minervini’s focus on accelerating fundamentals.

Technical Breakout Potential

According to ChartMill’s technical analysis report, MTA scores a perfect 10/10 on technical rating and an 8/10 on setup quality, indicating a strong trend with a consolidating base. Key points from the report include:

• Support Zones: Strong support lies between $4.14–$4.22, offering a logical stop-loss level.
• Resistance: A breakout above $4.32–$4.34 could signal more upside.
• Volume & Institutional Interest: Recent buying signals suggest institutional involvement.

Conclusion: A High-Growth Momentum Play

MTA presents a strong case for investors following Minervini’s strategy—solid technicals, high relative performance, and improving fundamentals. While risks exist (such as exposure to commodity prices), the stock’s momentum and growth profile make it worth further study.

For more high-growth momentum stocks matching the Minervini Trend Template, check our predefined screen here.

For a closer look at MTA’s technicals, see the full technical analysis report.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider risk management before trading.