For investors looking to join solid fundamental growth with positive technical patterns, a multi-layered screening method can be very useful. One way is to find stocks that perform strongly on three specific ChartMill ratings at the same time: a High Growth Momentum (HGM) Rating above 4, which points to solid and quickening earnings and sales trends; a Technical Rating above 7, showing a stock is in a good and steady uptrend; and a Setup Rating above 7, which spots stocks trading in a narrow range and possibly ready for a price move higher. This mix tries to locate companies with strong business thrust that are also set up technically for a possible move up in the near term.
Fundamental Growth Momentum
SSR MINING INC (NASDAQ:SSRM) makes a strong case from a growth momentum view, receiving an HGM Rating of 6. This number shows force across several important short-term growth measures that are key to the high-growth momentum investment style. The rating combines elements like earnings speed, positive surprises, and analyst changes to measure a company's present operational force.
A close look at the given data shows the reasons for SSRM's score:
- Strong Quarterly EPS Growth: The company has shown notable year-over-year earnings per share growth in recent quarters. The latest quarter had EPS rise by 966.7%, after an even bigger 1175% growth in the quarter before. This type of strong sequential speed is a main goal for momentum screens.
- Good Sales Growth: Revenue growth has matched this, with the last quarter showing a close to 50% year-over-year rise. This means top-line force is backing the bottom-line jump.
- Steady Earnings Surprises: In the past four quarters, SSRM has exceeded EPS estimates three times, with a typical surprise of 58.85%. It has exceeded revenue estimates in all four of those quarters. This record of doing better than forecasts builds positive momentum and frequently results in upward changes from analysts.
- Positive Analyst Changes: Mirroring this momentum, analysts have increased their earnings estimates for the next year by 11.57% over the past three months. Growing estimates are a key part, as they can drive more investor attention and price gains.
While longer-term yearly numbers show changes, a usual feature in the cyclical mining industry, the HGM Rating successfully catches the strong short-term earnings and sales momentum that SSRM is currently showing. This matches well with the strategy's aim of finding companies in a period of speeding business performance.
Technical Force and Setup Quality
Besides its fundamental momentum, SSRM shows very good technical condition. The stock gets a full Technical Rating of 10 from ChartMill, an uncommon number that puts it with the market's most forceful trending names. As stated in the detailed technical report, both its short-term and long-term trends are positive. It is doing better than 96% of all stocks over the past year and trades above all main moving averages (20, 50, 100, and 200-day), confirming a wide uptrend.
Importantly, this technical force is paired with a good-quality consolidation pattern, shown by a Setup Rating of 8. The report states that prices have been moving within a range over the past month, letting the stock absorb its earlier gains. This forms a possible "springboard" pattern. The study finds a clear support area below the present price and notes almost no overhead resistance, meaning a path of less resistance could be upward. A recent "Pocket Pivot" signal, a price increase on higher-than-normal volume, gives more proof of institutional buying during this consolidation period.
A Joining Opportunity
SSR Mining shows a joining of factors wanted by growth and technical investors. The company is experiencing a major short-term earnings speed, regularly beating forecasts and drawing positive analyst notice. At the same time, its stock price shows this force through a strong and continued uptrend that has now moved into a useful consolidation period. This mix of high growth momentum and a good-quality technical setup tries to find chances where fundamental drivers and price action are in agreement.
For investors wanting to find other stocks that fit this particular blend of strong growth, trend, and setup conditions, you can view the live screen here.
Disclaimer: This article is for information only and does not form investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and specific ratings, which can change. Investing includes risk, including the chance of loss of principal. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.
