For investors looking for a systematic way to find high-growth stocks, the method in Louis Navellier’s "The Little Book That Makes You Rich" offers a clear framework. The plan is based on eight basic rules meant to find companies showing better growth traits, from positive earnings changes and surprises to growing margins and good returns on equity. By using these number-based filters, the screen tries to find stocks with the possibility for major price gains. One stock that recently came from this strict screening is SSR Mining Inc (NASDAQ:SSRM), a precious metals producer with operations around the world.
A Good Fit for the Growth Rules
A detailed look at SSR Mining shows a company that fits well with many of Navellier’s important growth rules. The given screening data points out notable results across several measures that are key to the plan.
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Notable Earnings Growth and Speed: The "Little Book" plan values speeding earnings. SSR Mining’s numbers here are strong. The company reported a year-over-year EPS growth of more than 614% and a large 780% growth when comparing the latest quarter to the same quarter last year. Also, the data shows positive earnings speed, with the current quarterly EPS growth much higher than the growth rate from the same quarter a year before. This speed is an important sign for growth investors, pointing to better profit trends.
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Good Sales Growth and Analyst Trust: Steady revenue growth is another part of the plan. SSR Mining’s sales growth is good, with a 63.7% rise over the past year and a 61.4% rise in the latest quarter. This top-line growth is supported by positive analyst opinion, a key filter in the screen. The average EPS guess for the next quarter has been moved up by more than 8% in the last three months, and the company has exceeded EPS guesses in each of the last four quarters, with an average surprise of more than 83%. These positive changes and steady surprises show basic business strength that may not be fully seen in earlier guesses.
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Getting Better Profit and Financial State: The plan also looks for companies that are not just growing sales, but doing so with profit. SSR Mining’s operating margin growth of more than 181% in the past year suggests it is turning revenue into operating income with better efficiency. Also, the company’s free cash flow, a key sign of financial room and health, grew by a notable 334% over the same time. Finally, with a Return on Equity (ROE) of 11.3%, the company meets the screen’s need for at least a 10% ROE, showing it is making solid profits from shareholder equity.
Basic Health and Value Setting
Beyond the exact screening rules, a wider view of SSR Mining’s basic profile, as shown in its detailed analysis report, gives more setting. The company has an overall basic rating of 7 out of 10, doing well within the competitive Metals & Mining industry. Its profit is a clear strength, with profit and operating margins that are in the top group of its peers. The growth score is also very good, confirming the fast near-term trends found by the screen.
Maybe most important for investors, this strong growth comes with an interesting value score. Key measures suggest the stock is priced well compared to both its industry and the wider market. The Price/Earnings and Price/Forward Earnings ratios are much lower than industry averages, showing a possible value chance within a high-growth story, a mix that is often hard to find.
A First Step for More Study
It is key to remember that screens based on past and recent results, like the "Little Book" plan, are made as finding tools, not automatic buy signs. They find companies that have shown a particular set of wanted financial traits. For SSR Mining, these include fast earnings speed, strong sales growth, and getting better operational efficiency. Investors wanting to look at other companies that currently pass this same set of strict growth filters can view the full screening results here.
As always, full careful study is needed. This includes knowing company-specific risks, judging how long recent growth rates can last, looking at the bigger economic setting for commodity producers, and thinking about one’s own investment time and risk comfort.
Disclaimer: This article is for information only and does not make up financial advice, a suggestion, or an offer to buy or sell any securities. The "Little Book" screening method and the study of SSR Mining are shown as examples of a number-based investment plan. Investors should do their own study or talk with a qualified financial advisor before making any investment choices.
