For investors aiming to profit from active market shifts, a mixed method of technical and fundamental analysis can be an effective instrument. One particular tactic involves searching for stocks displaying solid core business expansion, confirmed by sound fundamentals, while also presenting a technical breakout formation on their price charts. This technique tries to spot firms where better business outlooks are starting to be acknowledged by the market, possibly marking the beginning of a continued rising price direction. The objective is to locate chances where fundamental soundness offers a base for the technical momentum to develop.
SSR Mining Inc (NASDAQ:SSRM) offers an interesting example for this tactic. The Denver-based precious metals producer, with operations in the U.S., Canada, Türkiye, and Argentina, has recently been seen on filters made to find such a combination of favorable signs.
A Base of Sound Fundamental Expansion
The key part of this tactic is finding companies with solid and speeding business expansion. SSR Mining’s fundamental picture, as shown in its ChartMill Fundamental Analysis Report, displays exactly this trait, giving the company a high Growth Rating of 8 out of 10.
- Notable Recent and Expected Expansion: The company reported a 30.3% year-over-year rise in revenue, a number called "very strong growth." More significantly, analysts expect this speed to increase, with average yearly revenue expansion estimated at 32.88% and earnings per share (EPS) expansion at 71.31% for the next years. This forward-looking speed increase is an important qualitative factor for a growth stock, showing the market it works in has notable promise.
- Good Value During Expansion: Frequently, high-expansion stocks sell at high values. SSR Mining shows a remarkable difference. The company’s Valuation Rating is a very good 9/10. Important measures point out this value:
- A forward P/E ratio of 6.84, which is less expensive than 94% of its industry group and much lower than the S&P 500 average.
- A low PEG ratio, which changes the P/E for expansion, further hinting the stock may be priced low given its earnings growth outlook.
- Sufficient Financial Soundness and Earnings: For a growth plan to last, the company must be on firm ground. SSR Mining gets middle but okay ratings of 5 for Financial Soundness and 6 for Earnings. The company keeps a very low debt-to-equity ratio (0.04) and a sound current ratio (2.41), showing good cash availability and workable debt. Its profit margin of 15.36% and operating margin of 27.14% do better than most of its peers in the Metals & Mining industry, giving the earnings required to support future expansion.
A Technical Picture Hinting at Momentum
While sound fundamentals give the "why" for a stock's promise, technical analysis helps spot the "when" by studying price movement and investor feeling. SSR Mining’s ChartMill Technical Analysis Report shows a stock that is settling after a large rise, possibly preparing for its next step.
- Sound Long-Term Direction and Results: The long-term direction for SSRM is clearly positive, with the stock doing better than 96% of all stocks in the market over the last year. This outstanding relative strength is a sign of top growth stocks.
- Settling Near Highs: After a strong rise, the stock has been trading in a set range between about $19.70 and $23.50 over the past month. This kind of settling, often called a "base," is a common pattern where a stock absorbs its earlier gains before trying to move up.
- Key Resistance and Support Points: The technical picture notes clear price levels to observe. Close resistance is near $22.44, with more important resistance around $23.28. A clear move above these levels, especially with more trading volume, could hint the uptrend is starting again. On the other hand, sound support is stacked below, with a main area between $21.20 and $21.61. This gives a sensible zone for a stop-loss order, helping to control risk if the move upward does not happen.
Why This Mix is Important
The link between these reports is what makes the filtering tactic work. The high Growth Rating verifies SSR Mining is not just a speculative jump but a company with better financial measures and a positive earnings view. The sound Valuation Rating suggests this expansion may not yet be completely valued by the market. At the same time, the technical view shows a stock that has already drawn notable buying attention (shown by its 12-month results) and is now waiting near its highs. This wait often comes before a continued move, especially if the fundamental story stays true. The tactic suggests that a move above the noted resistance could be the market’s sign that it is starting to value the company’s future expansion more actively.
Looking for More Chances
SSR Mining shows the kind of chance this mixed analysis tries to find. For investors wanting to use this method to locate other possible choices, the ready filter for Strong Growth Stocks with good Technical Setup Ratings can be a useful beginning point for more study.
Disclaimer: This article is for information and learning only and does not form a suggestion to buy, sell, or keep any security. The analysis uses data and reports from ChartMill and is not investment guidance. Investing in stocks includes risk, including the possible loss of original money. Always do your own complete study and think about your personal money situation and risk comfort before making any investment choices.
