Investors looking for high-growth chances often mix strict technical screening with basic momentum measures to find stocks set for continued strong performance. The method applied here brings together Mark Minervini's Trend Template, a structured way to find equities in clear uptrends, with a High Growth Momentum (HGM) rating to confirm solid underlying business expansion. This two-part plan tries to find stocks that are not only technically healthy but also show improving financial results, a pairing that can point to lasting upward price action.
Technical Strength and Trend Alignment
TRIPLE FLAG PRECIOUS MET (NYSE:TFPM) shows a strong technical picture that matches the Minervini Trend Template closely. This template focuses on stocks in a definite Stage 2 uptrend, marked by particular moving average arrangements and price behavior compared to important benchmarks.
- Price Above Key Moving Averages: The present price is located above the increasing 50-day, 150-day, and 200-day simple moving averages (SMAs). This setup verifies both near-term and longer-term positive momentum, a basic part of the Trend Template which aims to bypass stocks in consolidation or falling stages.
- Moving Average Arrangement: The 50-day SMA ($27.52) is higher than the 150-day SMA ($23.71), which is itself higher than the 200-day SMA ($21.84). This order of shorter-term averages above longer-term ones is a vital part of the Trend Template, showing steady and continued buying interest across various time frames.
- Nearness to Highs: With a present price of $30.00 trading within 5% of its 52-week high of $31.39, TFPM displays the solid momentum the plan looks for. The Trend Template prefers leading stocks, and stocks close to their highs often have the capacity to keep rising.
- Strong Relative Performance: A ChartMill Relative Strength (CRS) score of 92.68 shows TFPM is doing better than over 92% of the market. Minervini's system gives great weight to relative strength, as market-leading stocks that do better than others during uptrends are very likely to generate large gains.
Fundamentals Driving High Growth Momentum
Besides its technical strength, TFPM meets the standards for high-growth investing based on a group of improving fundamental measures. The HGM rating looks at earnings, revenue, and profit margin patterns to find companies with strong business momentum.
- Strong Earnings Growth: The company has shown notable earnings per share (EPS) growth, with a 79% rise over the trailing twelve months (TTM). More recent quarterly results are even stronger, with the last quarter showing 85% year-over-year EPS growth. This speeding up is a main feature Minervini links with "superperformance," where large earnings increases draw major institutional interest.
- Solid Revenue Growth: Top-line growth is also notable, with TTM revenue up 46% and the last quarter growing 48% year-over-year. Steady, high-double-digit revenue growth over recent quarters confirms solid demand and good operational performance, giving a good base for ongoing expansion.
- Increasing Profitability: Profit margins have shown clear improvement, getting to 59% in the newest quarter, up from 40% three quarters before. An upward profit margin pattern is a sign of a good business with pricing strength and operational effectiveness, elements that can result in fast earnings growth.
- Positive Analyst Changes: The average analyst estimate for next year's EPS has been moved up by over 15% in the last three months. Such positive changes frequently work as a trigger, pulling more institutional interest and confirming the company's growth path.
Technical Analysis Overview
The separate technical report for TFPM gives a top rating of 10 out of 10, showing outstanding technical condition. Main points include:
- Both long-term and short-term trends are rated as positive.
- The stock is trading close to its 52-week high and shows high relative performance compared to the wider market.
- The report finds a number of clear support areas below the present price, which can aid in risk control by giving sensible points for stop-loss orders.
- The pattern is described as a good consolidation formation inside a solid uptrend, with little resistance above.
A full look at the technical situation, including exact support levels and an example trade plan, is available in the full technical analysis report.
Finding Similar Opportunities
TRIPLE FLAG PRECIOUS MET offers an example of a stock that satisfies strict technical and fundamental growth requirements. For investors wanting to find other companies that match this "High Growth Momentum + Trend Template" profile, a ready-made screen exists. You can find more potential choices by using this screening tool.
Disclaimer: This is not financial advice. The content is intended for information and education purposes only. It is crucial to conduct your own research and consider your individual financial situation and risk tolerance before making any investment decisions. All investments carry risk, including the possible loss of principal.