OR Royalties Inc (NYSE:OR) Emerges as a Top Growth and Momentum Pick

OR Royalties Inc (NYSE:OR) has appeared as an interesting option for investors using systematic growth and momentum strategies. The company was found through a screening method that joins Mark Minervini's strict Trend Template with high growth momentum standards. This two-part method confirms chosen securities display both solid technical momentum traits and fundamental growth speed, forming an effective filter for finding possible market leaders during trending market periods.

Technical Strength Through Minervini's Trend Template

OR Royalties shows very good technical health, satisfying all important standards of Minervini's Trend Template. This systematic method centers on finding stocks in solid uptrends by studying price action, moving averages, and relative strength. The template's value is in its capacity to filter for securities showing continued upward momentum across several timeframes.

The company's present technical situation shows notable agreement with Minervini's requirements:

• Current price of $39.67 trades well above all main moving averages (50-day: $32.87, 150-day: $26.69, 200-day: $24.73)
• All moving averages show upward slopes, confirming continued momentum
• The 50-day SMA is positioned above both the 150-day and 200-day SMAs, showing faster intermediate-term momentum
• Current price is 126% above its 52-week low of $17.55 while staying within 3.4% of its 52-week high of $41.05
• Very good relative strength ranking of 95.04 shows the stock performs better than 95% of all stocks

These technical traits are especially important because they find stocks in what Minervini calls "Stage 2" accumulation phases, where the strongest price gains usually happen. The mix of rising moving averages, nearness to new highs, and better relative performance forms a technical picture favorable for continued upward momentum.

Fundamental Growth Momentum Drivers

Beyond technical strength, OR Royalties displays interesting fundamental growth traits that match high-growth investment standards. The company's earnings momentum and operational gains provide the fundamental basis for its technical breakout.

Recent quarterly performance shows notable speed:

• Current quarter EPS growth of 38.3% year-over-year
• Previous quarter EPS growth sped up to 43.8%
• Solid forward EPS estimates with next quarter growth expected at 77.4%
• Three EPS beats in the last four quarters with average surprise of 4.1%
• Analyst sentiment getting better with next-year EPS estimates adjusted upward by 12.2% over three months

Profit margin growth gives more proof of operational gain, with quarterly margins growing from 12.8% two quarters ago to 53.6% in the most recent quarter. This sharp margin gain indicates the company is reaching notable operational leverage and pricing ability within its royalty portfolio.

Royalty Business Model Advantages

OR Royalties' business model as a precious metals royalty and streaming company offers built-in benefits for growth investors. The company's portfolio, supported by its main 3-5% net smelter return royalty on the Canadian Malartic mine, creates revenue with little exposure to capital and operating costs. This model usually creates high-margin, scalable cash flows as production rises at underlying mining operations.

The company's varied portfolio of over 195 royalties, streams, and precious metal offtakes across North America offers several paths for growth without matching rises in operating expenses. This structural benefit adds to the notable free cash flow growth of 176% over the past year, reaching $0.46 per share.

Technical Assessment Summary

According to ChartMill's full technical study, OR Royalties gets a complete technical rating of 10 out of 10. The report says that "both in the recent history as in the last year, OR has proven to be a steady performer, scoring decent points in every aspect analyzed." The stock shows solid positive trends across both short-term and long-term timeframes, with special strength in its yearly performance that performs better than 95% of all stocks.

While the technical rating is excellent, the setup rating of 3 implies investors might look for better entry chances. The study notes that "price movement has been a little bit too volatile to find a nice entry and exit point" at present, suggesting waiting for consolidation before starting new positions.

View the complete technical analysis report for detailed support levels, resistance areas, and other technical metrics.

Discover More High-Growth Momentum Opportunities

For investors looking for other candidates that satisfy both Minervini Trend Template standards and high growth momentum requirements, explore our specialized screening tool to find other securities showing similar traits of technical strength and fundamental growth speed.

Disclaimer: This analysis is for informational and educational purposes only and does not constitute investment advice. The information provided should not be used as the sole basis for making investment decisions. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results, and all investments carry risk including possible loss of principal.