Investors looking to find stocks with high potential often join detailed technical study with an attention to basic growth. One organized method for this is the Mark Minervini plan, which uses his Trend Template to find stocks in strong uptrends with a high-growth momentum (HGM) score to confirm basic business health. This process sorts for securities that show both notable price leadership and are supported by quickening earnings and sales, a pairing with a history of leading to major gains.
OR Royalties Inc (NYSE:OR) comes from a scan made on these ideas, made to find stocks that pass on both a technical and basic growth level.
Meeting the Minervini Trend Template
The Minervini Trend Template is a key part of the plan, giving a strict technical list to confirm a stock is in a verified, lasting uptrend. OR seems to meet these important conditions from the given data:
- Price Above Key Moving Averages: The present price trades above the rising 50-day, 150-day, and 200-day simple moving averages (SMAs). This order points to positive momentum across short, medium, and long-term periods.
- Moving Average Order: The 50-day SMA ($39.72) is above both the 150-day SMA ($35.52) and the 200-day SMA ($33.03), while the 150-day SMA is also above the 200-day SMA. This "stacked" order is a clear sign of a solid stage 2 rise.
- Nearness to Highs: The stock is trading within 25% of its 52-week high ($47.75), an important Minervini rule that focuses on strength instead of low price. At the same time, the present price is more than 30% above its 52-week low ($17.55), confirming a major recovery trend is established.
- Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 95.61, OR is doing better than about 96% of all stocks. High relative strength is a required quality for Minervini, finding market leaders that often lead upward moves.
This technical picture suggests OR is showing the kind of controlled, institutional buying pressure the Trend Template is made to identify.
Qualifying for High Growth Momentum
The technical strength is supported by a solid basic growth story, as seen in its High Growth Momentum (HGM) score. This score measures the quickening and quality of a company's earnings and sales. For OR, the basic numbers show strong growth:
- Major Earnings Growth: The company's trailing twelve-month (TTM) EPS has grown by almost 70% year-over-year. More notably, recent three-month EPS growth has quickened greatly, with the last three months showing a 100% rise compared to the same three months a year before.
- Solid and Quickening Revenue: TTM revenue growth is over 34%. The sales momentum is even clearer on a three-month basis, with the most recent three months posting almost 60% year-over-year growth, after a 72% rise in the three months before.
- High Profitability and Positive Changes: OR keeps very high profit margins, which have gotten better in recent years. Also, analysts have been increasing their estimates for the company's next-year earnings over the past three months, a signal of building trust in its future path.
This pairing of quickening top-line growth, growing bottom-line profitability, and positive analyst feeling forms the base of a high-growth momentum investment case, matching well with the basic scans Minervini supports in his SEPA (Specific Entry Point Analysis) method.
Technical Health and Setup Review
A look at the given technical study report gives a combined view of OR's chart health. The stock gets a top-level Technical Rating of 10/10, showing a steady and strong performance across both short and long-term periods. The long-term and short-term trends are both scored as positive, and the stock's steady, above-average performance over the past year is noted.
The Setup Quality Rating is 6/10. The report states that while OR has a very good technical base, its recent trading band has been somewhat wide. The stock is now trading in the middle of this band, suggesting that while a good setup exists with lower volatility and a set support area near $39.72, it may not be in the narrowest, most direct breakout shape. This points to the importance of the Minervini idea of waiting for a set entry point, like a breakout from a volatility squeeze pattern (VCP), instead of buying a strong stock directly.
For a full look at the support levels, moving averages, and automated trade setup ideas, you can see the full ChartMill Technical Analysis Report for OR.
Conclusion
OR Royalties Inc shows a solid case study of a security that matches a controlled growth-and-momentum investment method. It meets the strict technical filters of the Minervini Trend Template, confirming it is in a solid uptrend and a market leader. Basically, it shows the high-growth momentum traits, through fast earnings quickening, strong sales growth, and high profitability, that are needed for keeping such a trend. While the present chart shows a solid trend, investors following the Minervini plan closely would likely watch OR for a more clear, low-risk entry point within its continuing rise.
Interested in finding similar stocks? You can run the "High Growth Momentum + Trend Template" scan yourself to look at other stocks that meet these joined rules. Click here to access the scan and view more results.
Disclaimer: This article is for information and learning only. It is not meant as investment guidance, a suggestion, or an offer to buy or sell any security. The study is based on given data and certain method frameworks; past performance does not show future results. Always do your own study and think about talking with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.
