OR Royalties Inc (NYSE:OR) Combines High Growth Momentum with Bullish Technical Setup

Investors looking to join solid fundamental growth with positive technical patterns frequently use a multi-part screening process. One useful technique is to search for stocks that display a high growth momentum profile, supported by a strong technical trend and a present price consolidation hinting at a possible breakout. This method tries to find companies that are not only increasing their earnings at a quickening rate but are also in a verified uptrend and might be ready for their next move upward. A recent screen using these ideas, searching for a ChartMill High Growth Momentum Rating above 4, a Technical Rating above 7, and a Setup Rating above 7, has found OR Royalties Inc (NYSE:OR) as a candidate deserving more attention.

High Growth Momentum Profile

The heart of this method starts with finding companies showing forceful earnings and sales momentum. OR Royalties Inc, a company centered on buying and managing precious metal royalties and streams, displays several notable growth traits that add to its firm High Growth Momentum Rating of 6.

• Outstanding Earnings Acceleration: The company's latest quarterly earnings per share increased by 102% versus the same quarter last year. This comes after earlier growth rates of 38.3% and 43.8% in the two quarters before, showing a major and recent quickening in profit.
• Firm Sales Growth Rebound: Following a time of decrease, sales growth has become clearly positive. Revenue in the last quarter jumped 72.3% year-over-year, a sharp change from drops in the two prior quarters.
• Firm Cash Flow Generation: Free cash flow per share over the past twelve months has grown greatly, increasing by 177% compared to the earlier period. This shows the company's firm ability to turn earnings into usable cash.
• Growing Profitability: The company's profit margin in the last reported quarter was about 115.7%, a large growth from 53.6% in the quarter before and 12.8% two quarters earlier. This points to better operational efficiency and leverage within its royalty model.
• Positive Analyst Sentiment: Analysts have been adjusting their estimates higher, with the average EPS estimate for the next year rising by over 11% in the past three months. The company has also exceeded EPS estimates in three of the last four quarters.

These elements together create an image of a company in a strong phase of fundamental betterment. For momentum investors, this mix of quickening earnings, returning sales, growing margins, and positive estimate changes is exactly the profile wanted to find leaders with possibility for continued strong performance.

Technical Strength and Setup Quality

A firm growth story must be joined by favorable price action. According to the detailed ChartMill Technical Report, OR shows excellent technical condition, receiving a near-perfect Technical Rating of 9. The report notes that both the short-term and long-term trends are positive, and the stock is performing better than 92% of the wider market over the last year. It is trading above important moving averages, including the rising 20-day, 100-day, and 200-day simple moving averages, which verifies the strength and steadiness of its uptrend.

Maybe more important for timing an entry is the stock's present pattern. OR has a Setup Rating of 7, showing it is forming a constructive consolidation. The technical analysis states that prices have been trading in a range between about $32.05 and $36.76 over the past month and are presently near the high side of this range. This time of sideways movement after a strong rise lets the stock absorb its gains and can form a base for the next breakout.

The report finds a clear support area between $34.15 and $34.82, formed by a combination of trendlines and moving averages. The existence of this specific support level below the present price allows for the tactical placement of a stop-loss order, controlling risk well. A recent "Pocket Pivot" signal, a price move up on higher-than-normal volume, adds another positive technical sign, suggesting accumulation.

Conclusion

OR Royalties Inc presents a case where notable fundamental momentum meets strong technical position. The company's explosive recent earnings growth, margin growth, and positive analyst estimate changes meet the main standards for high growth momentum investors. At the same time, its firm market-relative performance, verified uptrend, and present consolidation pattern provide a technically sound setup with specific risk measures.

This match is what the combined screening process is made to discover: companies that are fundamentally quickening and technically placed for a possible continuation of their trend. For investors using such a method, OR stands as a candidate that deserves more independent research within the setting of a varied portfolio and a careful risk management plan.

Interested in finding more stocks that match this high-growth, strong-setup profile? 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 should not be the sole basis for an investment decision. Investors should conduct their own independent research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.