Growth investing methods often depend on finding companies with strong and quickening financial performance. One organized method for this is described in Louis Navellier's "The Little Book That Makes You Rich," which lists eight basic rules for choosing excellent growth stocks. These rules center on favorable earnings revisions and surprises, rising sales, widening margins, good cash flow, earnings improvement, favorable earnings momentum, and a high return on equity. The aim is to locate companies that are not only improving but doing so with gains in efficiency and profit, qualities that may result in notable stock price gains.
A recent filter using this approach has found SSR MINING INC (NASDAQ:SSRM) as a stock for more detailed study. The Denver-based precious metals producer, with activities in the U.S., Türkiye, Canada, and Argentina, seems to display a number of the important features Navellier's method looks for.
Matching the "Little Book" Standards
The filter's settings turn Navellier's eight rules into particular numerical limits. SSR Mining's recent financial results indicate it matches or passes many of these marks, showing the basic momentum the method aims to find.
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Favorable Earnings Revisions & Surprises: A key part of the method is that analyst estimate changes can be an early signal. For SSR Mining, the average EPS estimate for the next quarter has been increased by 38.14% over the last three months, a large upward change that implies better visibility and confidence. Also, the company has reported a favorable earnings surprise in each of the last four quarters, with an average beat of 84.08%. Regularly beating estimates can make analysts reconsider their future models, possibly leading to more estimate rises.
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Strong Sales and Earnings Improvement: Quickening improvement is critical. SSR Mining shows very high year-over-year improvement, with revenue up 63.68% and earnings per share jumping 614.29%. The quarterly trend is even more marked, with sales improvement of 61.42% and EPS improvement of 780% compared to the same quarter last year. This shows the company is not just improving but is in a period of major operational increase.
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Widening Profit and Good Cash Flow: Improvement is most useful when it becomes more profitable. SSR Mining's operating margin has widened by a notable 181.26% over the past year, showing it is turning a much bigger part of its higher revenue into operating income. This widening is a key signal of operational efficiency and pricing ability. Supporting this, the company's free cash flow has improved by 333.69%, giving it significant financial room to fund activities, seek improvement, or give capital to shareholders without depending much on outside funding.
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Favorable Earnings Momentum and High ROE: The method looks for acceleration, not just improvement. The current large quarterly EPS improvement of 780% shows a sharp favorable change from the -83.05% improvement reported for the same quarter-year comparison four quarters ago, indicating strong favorable earnings momentum. Finally, the company's return on equity (ROE) is 11.28%, passing the method's lowest limit of 10%. This shows SSR Mining is producing a good profit on shareholder equity.
Basic Condition and Valuation Setting
Beyond the specific filter standards, a wider view of SSR Mining's basic profile gives more setting. According to ChartMill's study, the company has an overall basic rating of 7 out of 10. The report points out a "great profit rating" led by industry-leading margins, together with "strong improvement" in both revenue and earnings. While there are some notes of care about financial condition measures like liquidity ratios, the balance sheet is helped by a very low debt-to-equity ratio of 0.04.
Maybe most interesting is the valuation view that appears. The stock seems low-priced compared to both its industry and the wider market, especially on a forward-looking basis with a Price/Earnings ratio of just 8.00. This makes what the report calls "an interesting mix" of strong improvement paired with a seemingly low price, a situation that can be appealing for some investment methods. You can see the full, detailed basic study for SSR Mining here.
A Stock for More Study
It is important to state that the "Little Book" filter is a beginning point for basic discovery, not a final buy list. The method is purposely centered on near-term momentum signals to find companies early in an improvement cycle. For SSR Mining, an investor would need to do more detailed examination. This includes knowing the causes behind the recent very high improvement—such as production levels, commodity gold and silver prices, and operational results at its four mine sites—and judging the ability to continue this momentum in the changing mining sector. The company's geographical spread and its 2.47% dividend yield may also be points for a long-term owner to think about.
For investors focused on using this organized growth method to the present market, the filter that found SSR Mining is open to the public. You can view the live filter here to see all passing stocks and change the standards based on your own study and risk comfort.
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 data and a set filtering method; past results are not a sign of future outcomes. Investors should do their own complete study and think about their personal financial situation before making any investment choices.