SSR Mining Inc. (NASDAQ:SSRM) Presents a Strong Growth and Technical Setup

For investors aiming to benefit from quickening company performance, a mix of technical and fundamental analysis can be a useful instrument. One tactic looks for stocks showing firm basic growth qualities, such as increasing earnings and sales, while also presenting favorable technical price formations that indicate a possible upward move. This technique seeks to find companies where better business outlooks are starting to be seen by the market, which may result in a continued rise in the stock price. A recent filter for "Strong Growth Stocks with good Technical Setup Ratings" found one example: SSR MINING INC (NASDAQ:SSRM).

A Firm Basic Growth Picture

The heart of this tactic starts with finding companies showing solid and quickening business expansion. Based on the fundamental analysis report for SSR Mining, the company receives a high Growth Rating of 8 out of 10, meaning it is doing better than a large part of its industry group. This rating is backed by strong recent and forecasted numbers:

• Notable Recent Expansion: The company posted a 58.44% year-over-year rise in Earnings Per Share (EPS) and a 30.30% increase in revenue. This firm momentum is a main qualitative requirement for a growth stock, showing the company is performing well in its field.
• Quickening Future Projections: Maybe more significant, analysts forecast this expansion to persist and even quicken. The estimated average yearly EPS growth for the next years is 71.31%, with revenue predicted to grow at 32.55% per year. This forward-looking quickening is a main element, as described in the growth investment approach, where future possibility is most important.
• Good Value With Expansion: Frequently, high-growth stocks sell at high values. However, SSR Mining shows a notable mix, receiving a top-level Valuation Rating of 9. Important value measures indicate the stock may be priced well compared to its growth path:
  • A Forward P/E ratio of 6.84 is much lower than both the industry average and the wider S&P 500.
  • The stock is less expensive than over 96% of its Metals & Mining industry group based on this forward earnings multiple.

This mix of firm past growth, even firmer expected future growth, and a sensible value forms a basic picture that matches the tactic's aim of finding companies with notable upward possibility.

Technical Formation Indicates Pause Before Possible Upward Move

While firm basics give the "reason" for a stock's possibility, technical analysis helps find the "timing" by studying price movement and market feeling. The technical analysis report gives SSR Mining a complete Technical Rating of 10 and a Setup Rating of 7, meaning a good formation is forming.

• Firm Long-Term Direction: The long-term direction for SSRM is decidedly positive, with the stock price trading well above its important 200-day moving average. It has been one of the market's stronger performers over the last year, doing better than about 96% of all stocks.
• Pause Within a Band: Lately, the stock has started a phase of pause, trading between about $20.83 and $24.89 over the last month. This kind of price movement, after a firm upward move, can show a time of rest where the stock builds strength for its next rise.
• Defined Floor and Ceiling: The technical formation finds a defined floor area near $22.77, made by a mix of trendlines and moving averages. Above the present price, there is seen to be "very little ceiling," meaning that a clear move above the recent pause high could lead to a open path upward for the price.

This technical position, a firm long-term direction mixed with a narrow pause formation near highs, is exactly the kind of "technical upward move formation" the filtering tactic looks for. It shows a possible entry point where the stock's basic growth story may be about to reappear in the price movement.

Earnings and Money Soundness Review

The filtering tactic also needs stocks to have "adequate earnings and soundness," making sure the growth is built on a solid operational and money base. SSR Mining's reports show a varied but acceptable view in these areas.

• Earnings: The company gets an Earnings Rating of 6. It has firm margins, with a Gross Margin of 46.52% and an Operating Margin of 27.14%, each doing better than over 75% of industry group members. However, its average Return on Invested Capital (ROIC) over three years is below the industry average, which moderates the total score.
• Money Soundness: The Financial Health Rating is a middle 5. The company keeps a very low Debt/Equity ratio of 0.04 and a good Current Ratio, meaning strong liquidity and a careful balance sheet. A point of care is the Altman-Z score, which puts the company in a area that calls for watching for money risk, though its firm free cash flow production helps ease payment ability worries.

These ratings mean that while not perfect, SSR Mining has enough earnings and money steadiness to back its growth story, meeting the tactic's minimum standards.

Summary

SSR Mining shows a situation that matches the ideas of a mixed growth and technical upward move tactic. Basically, the company is displaying forceful and quickening growth in earnings and sales while being valued carefully compared to its peers and future outlook. Technically, the stock is in a long-term upward direction and is now pausing in a band, forming for a possible upward move that could see it test new highs. The company's solid margins and careful debt levels give a sensible money base for this growth.

For investors wanting to use this method to find similar chances, the set "Strong Growth Stock Technical Formations" filter is ready to use. You can look at more possible finds from this filter here.

Disclaimer: This article is for information only and does not make up financial guidance, a suggestion, or an offer or request to buy or sell any securities. The study is based on data and reports present at the time of writing. 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.