Metalla Royalty & Streaming (NYSEARCA:MTA) Meets Key Minervini Trend Template and Growth Momentum Criteria

Investors looking to find high-potential stocks frequently use systematic methods that mix strict technical and fundamental study. One method is the system made popular by Mark Minervini, a two-time U.S. Investing Champion. His system, called Specific Entry Point Analysis (SEPA), centers on finding stocks with strong growth possibility by confirming they are in solid uptrends and supported by improving business fundamentals. This two-step method helps distinguish real market leaders from the wider group of stocks. A central part is the Trend Template, a fixed technical list, which is then merged with filters for strong growth momentum to confirm a company's operational results fit its positive price movement.

A Solid Technical Base: Meeting the Trend Template

For a stock to be reviewed under the Minervini system, it must first meet each condition of his Trend Template. This template is made to filter for securities showing definite, continued upward movement across several time periods. Metalla Royalty & Streaming Ltd. (NYSEARCA:MTA) now shows a chart that fits these technical requirements.

• Price Above Important Moving Averages: The stock's present price trades well above its 50-day ($6.96), 150-day ($5.14), and 200-day ($4.59) simple moving averages (SMAs). This ordered arrangement is a standard sign of a sound Stage 2 uptrend.
• Increasing Long-Term Averages: Both the 150-day and 200-day SMAs have an upward slope, verifying the long-term trend is rising. The 200-day SMA, an important benchmark, has increased from a prior value of $4.57 to its current $4.59.
• Correct Moving Average Order: The shorter-term 50-day SMA is positioned above both the 150-day and 200-day SMAs, while the 150-day SMA is above the 200-day. This "ordered" setup shows gaining momentum.
• Nearness to Highs: A central Minervini principle is to concentrate on strength, not weakness. MTA is now trading at its 52-week high of $7.82, meaning it is within 25% of its high (it is at the high) and is more than 30% above its 52-week low of $2.45. This shows solid relative strength and an absence of overhead supply.
• Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 97.32, MTA is performing better than almost 98% of all stocks in the market over the last year. Minervini states that real leaders usually have RS scores above 70, ideally in the 80s or 90s.

Fulfilling these technical requirements is essential in the SEPA process. It confirms an investor is only reviewing stocks where the direction of least resistance is clearly higher, thus improving the chances in their favor before even studying the basic business.

The Fundamental Driver: Meeting High Growth Momentum

A positive chart is only part of the picture. Minervini's system looks for stocks where solid price movement is driven by bettering fundamentals, what he names the "fundamental driver." The given data indicates MTA shows several traits looked for by high-growth momentum investors.

• Strong Revenue Growth: The company is showing major top-line growth. Revenue growth on a trailing twelve-month (TTM) basis is over 108%, and the latest quarter saw sales rise nearly 147% year-over-year. This type of gain is a main filter for growth investors.
• Earnings Path Becoming Positive: While the company reported a small loss on a TTM EPS basis, the trend is strongly positive. Quarterly EPS growth is gaining quickly, with the last quarter showing a 200% year-over-year rise. Also, analysts are becoming noticeably more positive, changing their next-year EPS estimates upward by 80% over the last three months.
• Bettering Profitability: The most recent quarterly profit margin was 15.7%, a good number that shows the company's revenue growth is turning into earnings. Positive and growing margins are a key sign of a successful growth company.
• Solid Free Cash Flow Production: For a royalty and streaming company, cash flow is critical. MTA's TTM free cash flow per share is positive and has grown by 164% over the past year, giving financial room and confirming its business model.

These measures show that MTA is not just a speculative story but a company seeing real, gaining financial performance. This fundamental gain gives the "reason" for the stock's positive technical breakout, a pairing Minervini calls the "fuel" for a continued rise.

Technical Condition Summary

The given technical study report gives a brief summary of MTA's chart condition. The stock receives a complete ChartMill Technical Rating of 10 out of 10, showing very good strength across all checked time periods. The long-term and short-term trends are both rated as positive. The report states the stock is trading near the top of its recent range and has shown a steady pattern of increasing prices. While the very good technical rating is clear, the report also states the present Setup Quality score is a 6, suggesting that after its recent rise, the stock might gain from a time of consolidation to create a more clear, lower-risk entry point for new investors. You can see the full, detailed technical report here: MTA Technical Analysis Report.

Locating Comparable Possibilities

Metalla Royalty & Streaming gives a strong example of a stock that fits both the technical rules of the Minervini Trend Template and the fundamental strictness of high-growth momentum investing. For investors wanting to filter for other securities that meet this paired standard, the preset filter used to find MTA is ready for more review. You can find more possible choices by using the "High Growth Momentum + Trend Template" filter on ChartMill.

Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. The study is based on given data and a particular investment system. All investing includes risk, including the possible loss of principal. You should do your own study and talk with a qualified financial advisor before making any investment choices.