TRIPLE FLAG PRECIOUS MET (NYSE:TFPM) Combines Minervini Trend Template with Strong Growth Momentum

The selection process used here joins Mark Minervini's strict Trend Template with a concentration on strong growth momentum, forming a solid two-step method for spotting possible market leaders. Minervini's method focuses on purchasing stocks in powerful uptrends with improving fundamentals, a system built to seize the most dynamic periods of a stock's rise. By adding this with a strong growth momentum filter, the method finds companies that are not only technically healthy but also showing outstanding operational and profit increases, a characteristic of the most notable market successes.

Following the Minervini Trend Template

TRIPLE FLAG PRECIOUS MET (NYSE:TFPM) shows a strong technical image that matches the requirements of the Minervini Trend Template. This template is essential to the method, as it confirms a stock is in a verified, strong uptrend before a purchase is thought about, therefore trading with the existing momentum.

• Price Above Key Moving Averages: The stock's present price of $30.10 is above its increasing 50-day ($29.24), 150-day ($25.44), and 200-day ($23.59) simple moving averages. This order confirms that the stock is in a confirmed bull market phase across short, intermediate, and long-term periods.
• Moving Average Order: The 50-day SMA is positioned above both the 150-day and 200-day SMAs, while the 150-day SMA is above the 200-day SMA. This positive sequential order is a vital part of the Trend Template, showing building momentum and that buyers have clear command.
• Nearness to Highs: The present price is more than 30% above its 52-week low of $14.51 and is within 25% of its 52-week high of $33.51. Minervini’s work indicates that stocks close to their highs frequently have the strongest momentum and are usually front-runners in their industry, not stragglers.
• Strong Relative Strength: With a ChartMill Relative Strength (CRS) rating of 92.97, TFPM is doing better than over 92% of the market. A high RS rating is a fundamental part of the method, finding securities with built-in strength that often drive the market upward during positive periods.

Fundamentals for Strong Growth Momentum

Beyond a clean chart, TFPM shows the fundamental improvement that Minervini notes as a sign of major performance. The "High Growth Momentum" filter looks for businesses with fast earnings and sales increases, which draws institutional interest and supports continued price gains.

• Fast Earnings Growth: The company is showing notable profit increases. Earnings Per Share (EPS) for the trailing twelve months (TTM) increased by 75.5%. This improvement is even more visible on a quarterly basis, with the latest quarter showing 60% year-over-year growth, after earlier quarters of 84.6% and 66.7%. This sequence of high, and sometimes increasing, quarterly growth is a strong sign of operational quality.
• Steady Earnings Surprises: TFPM has exceeded EPS estimates in each of the past four quarters, with an average surprise of 9.54%. Steady positive surprises often cause analysts to increase their future estimates, creating a positive loop of rising expectations and purchasing activity.
• Strong Revenue Growth: Top-line growth is also notable, with TTM revenue increasing 39.5%. Recent quarterly sales growth has been solid, at 26.9% in the last quarter, after quarters of 48.0% and 43.0%. Healthy sales growth confirms that earnings gains are fueled by real business growth, not only expense reduction.
• Notable Analyst Confidence: The expectation for continued growth is healthy, shown by a 19.7% increase to next year's EPS estimates by analysts over the past three months. Such large upward changes are a key driver, showing increasing belief in the company's future potential.
• Growing Profitability: The company's profit margin in the last reported quarter was 66.3%, showing a clear step-up from 59.2% and 55.3% in the previous quarters. Growing margins show pricing strength and operational effectiveness, which can greatly increase earnings growth as revenue grows.

Technical Condition and Setup Summary

According to the detailed ChartMill Technical Analysis report, TFPM receives a very good overall technical rating of 9 out of 10, reflecting its healthy trend and market-leading performance over the previous year. The report states that while the long-term trend is still positive, the short-term trend is now neutral, and the stock has been moving in a broad range lately. As a result, the setup quality rating is lower at 3, indicating that while the stock is technically healthy, it may not be in a perfect low-risk base for a new purchase at this exact time. The analysis points out several important support levels below the present price, which would be key zones for risk control if a purchase were started.

For a full review of the technical indicators, support levels, and automated setup ideas, you can see the full technical analysis report for TFPM.

Find Other Strong-Growth Choices

TRIPLE FLAG PRECIOUS MET shows how the combination of Minervini's trend-following rules with strong-growth fundamental filters can find interesting candidates. For investors looking to use this process to find other possible leaders, this method can be copied using the predefined filter.

You can find more stocks that fit these joined requirements by checking the 'High Growth Momentum + Trend Template' screen on ChartMill.

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