TRIPLE FLAG PRECIOUS MET (NYSE:TFPM) Combines Technical Momentum and High Growth Fundamentals

TRIPLE FLAG PRECIOUS MET (NYSE:TFPM) has been identified through a screening process that combines Mark Minervini’s Trend Template with a High Growth Momentum (HGM) rating. This dual method confirms that chosen stocks show both solid technical momentum, indicating they are in a maintained uptrend, and also display strong fundamental growth traits, making them appealing for investors looking for both momentum and earnings acceleration. The strategy focuses on stocks that are front-runners in their industries, trading close to new highs with bettering financial numbers, which frequently come before more price gains.

Technical Strength and Trend Template Alignment

TRIPLE FLAG PRECIOUS MET satisfies all main conditions of Minervini’s Trend Template, which is made to find stocks in strong uptrends. The template concentrates on price action compared to moving averages, momentum signals, and relative performance against the wider market.

• Price Above Key Moving Averages: The stock is trading significantly above its 50-day ($24.83), 150-day ($21.71), and 200-day ($20.27) simple moving averages, confirming both near-term and longer-term positive trends.
• Moving Average Alignment: The 50-day moving average is higher than the 150-day and 200-day averages, and the 150-day is above the 200-day, showing consistent momentum across different periods.
• Proximity to Highs: With a present price of $28.33, TFPM is trading within 0.6% of its 52-week high of $28.49, meeting the condition that stocks should be within 25% of their annual highs to capture leading momentum.
• Strong Relative Strength: The stock’s relative strength ranking of 91.46 shows it is doing better than over 91% of all stocks, a sign of market leadership.

These technical features are important because they help remove stocks in consolidating or falling stages, concentrating instead on those with verified upward momentum, a key part of Minervini’s belief that successful stocks keep being successful.

Fundamental Growth and Momentum

Along with technical strength, TFPM displays notable fundamental growth, as seen in its High Growth Momentum (HGM) rating. This rating assesses earnings acceleration, revenue growth, profit margins, and analyst changes.

• Earnings Growth: The company reported EPS growth of 79.07% over the trailing twelve months, with the latest quarterly growth increasing to 84.62%. This type of growth often draws institutional attention and pushes further price momentum.
• Revenue Expansion: Revenue increased 45.86% year-over-year, with the most recent quarter showing a 47.98% rise. Steady top-line growth backs the sustainability of earnings gains.
• Profit Margin Improvement: Quarterly profit margins have grown notably, getting to 59.24% in the last quarter, up from 40.25% three quarters before. Increasing margins show operational effectiveness and pricing strength.
• Positive Revisions: Analyst estimates for next year’s EPS have been increased by 14.92% over the past three months, showing rising positive sentiment about the company’s future.

These measures are crucial because Minervini’s strategy highlights that stocks with solid fundamental acceleration, especially in earnings and sales, are more probable to maintain their uptrends and reach outperformance.

Sector and Industry Context

As a precious metals streaming and royalty company, TFPM provides leveraged access to gold and silver prices without the operational hazards of mining. Its varied collection of 17 streams and 220 royalties across producing and development-stage projects in steady regions offers a durable business model. The company’s recent results match a wider pattern of strength in precious metals, fueled by macroeconomic elements like inflation worries and currency devaluation, which have raised investor attention in gold-related assets.

Technical Analysis Overview

An examination of TFPM’s technical profile shows a stock in a solid uptrend with a ChartMill Technical Rating of 10/10, the top score, indicating outstanding price strength and trend steadiness. The stock is achieving new 52-week highs, and both its near-term and longer-term trends are positive. However, the setup rating is presently average (3/10), implying that while the stock is technically healthy, it might be overextended in the short term and could gain from a pause period before offering a better entry chance. Important support levels are found between $26.11 and $26.98, giving possible zones for pullback entries.

For a complete technical analysis, readers can see the full technical report here.

Conclusion

TRIPLE FLAG PRECIOUS MET is a notable example of a stock that fits both the technical discipline of Minervini’s Trend Template and the fundamental strictness of high-growth investing. Its solid price momentum, along with outstanding earnings and revenue growth, places it as a front-runner in its industry. While the present technical setup indicates waiting for a better entry, the core trends stay strong.

For investors wanting to research similar high-growth, high-momentum stocks, more screening results can be found via this High Growth Momentum + Trend Template screen.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.