Investors looking to join detailed chart study with basic growth measures often use methods like the one made common by Mark Minervini. This method, called the Specific Entry Point Analysis (SEPA), uses a step-by-step process to find stocks showing solid upward price movement, backed by forceful earnings and sales progress. The aim is to spot market front-runners early in their large price gains by using a fixed list, the Trend Template, for chart condition, and then adding strict business filters to verify speeding company results. This two-part plan seeks to take part in the steep growth stage of a stock while controlling risk through exact buy and sell rules.
SSR Mining Inc (NASDAQ:SSRM) stands as a present option that seems to meet the main ideas of this joined plan, offering a study in matching chart force with business speed increase.
Chart Base: Following the Trend Template
The Minervini Trend Template is made to sort for stocks in a clear Stage 2 upward move, making sure an investor buys into force, not trying to stop a dropping price. SSR Mining's chart shows a clear match with these chart rules:
- Trend Match: The stock's price is trading above all main simple moving averages (SMAs), the 50-day ($28.90), 150-day ($24.80), and 200-day ($22.41). Importantly, these averages are lined up in the right positive order: the 50-day SMA is above the 150-day, which is above the 200-day SMA. Also, the 200-day SMA itself has an upward angle, confirming a continued long-term upward move.
- Nearness to Highs: A key part of the Minervini idea is to concentrate on force. SSR Mining's present price is about 187% above its 52-week low of $9.875 and within 15% of its 52-week high of $36.515. This shows major recovery force and places the stock as a front-runner, not a straggler.
- Better Relative Performance: The stock has a ChartMill Relative Strength (CRS) score of 96.15, meaning it has done better than 96% of the market over the last year. High relative performance is a fixed filter in the Trend Template, as it finds stocks that are drawing large investor money and leading their groups.
This chart setup shows that SSRM is in a forceful, clear upward move, meeting the needed "when" state for a Minervini-style situation.
Business Driver: The High Growth Force Case
While the Trend Template makes sure a stock is chart-wise sound, the SEPA plan needs a business cause, usually very fast growth in earnings and sales. The given information suggests SSR Mining is seeing exactly that, which is why it gets high marks on a High Growth Momentum (HGM) scan.
- Very Fast Earnings Growth: The company's earnings per share (EPS) growth is extremely large. Year-over-year EPS growth is at 614%, and recent three-month comparisons show gains of 780%, 967%, and 1,175% over the last three quarters. This series of huge speed increase is a main sign of companies set for major price change.
- Forceful and Speeding Income: Income growth backs the profit explosion. Income has grown 63.7% over the past year, with recent three-month sales growth numbers of 61%, 50%, and 119%. This points to solid need and company action, not just number changes.
- Positive Estimate Changes: Analyst view is getting stronger, a key extra check. Guesses for next year's EPS have been moved up by over 32% in the last three months, and income guesses have been raised by 12.4%. Upward changes often come before more large investor buying.
- Steady Results vs. Guesses: The company has topped both EPS and income guesses in each of the last four quarters, with an average EPS beat of 84%. This history of beating guesses builds trust and can be a continued cause for the stock.
This business picture fits with the Minervini idea that "large earnings draw large notice." The mix of high growth rates, speed increase, and positive surprises creates the forceful business cause needed to maintain and push a chart breakout.
Chart Condition and Situation Review
A look at SSR Mining's chart study report gives a short summary. The stock gets a full Chart Rating of 10/10, showing its steady better performance across all time frames and its front-runner place within the Metals & Mining group, where it does better than 87% of its peers. Both its long-term and short-term moves are rated as good.
The report states, however, that while the chart condition is very good, the present Situation Quality rating is smaller (3/10). This shows that after its major rise, the stock may be starting a time of pause or seeing higher price swings, making a perfect, low-risk buy point less obvious at this exact time. For a Minervini-style trader, this shows the need for waiting, watching for the stock to form a tighter low-swing pattern or a new flat period within its continuing upward move before starting a buy.
End
SSR Mining Inc offers a strong case where a solid chart upward move, as described by the Minervini Trend Template, is supported by a business story of very fast earnings and sales force. It shows the kind of stock aimed for by plans looking for high growth inside a moving market. The chart report confirms its front-runner place, though also suggests that possible investors should watch for a more clear situation to improve the risk/reward balance of any possible buy.
Want to find similar options that meet both chart trend and high-growth business rules? You can look at the set scan that found SSRM and find other possible situations by going to the High Growth Momentum + Trend Template scan on ChartMill.
Disclaimer: This writing is for information and learning only. It is not advice to buy or sell any security. The study is based on given information and a certain investment method. Investors should do their own full study and think about their personal risk comfort before making any investment choices. Please read our full disclaimer here.