For investors looking to join solid fundamental growth with positive technical patterns, a multi-layered screening method can be useful. One approach uses filters for stocks that display three main traits: a high growth momentum profile, sound technical condition, and a favorable price formation. This method tries to find companies that are seeing quickening earnings and sales and are also trading inside a specific consolidation pattern, possibly giving a defined entry point before a new upward phase. The aim is to match the strong fundamental forces preferred by growth and momentum investors with the structured entry and exit system used by technical traders.
Triple Flag Precious Metals Corp. (NYSE:TFPM) appears as a present candidate fitting this joined standard. As a precious metals streaming and royalty company, its business model gives leveraged contact to gold and silver prices through a varied collection of 237 assets. The company's latest results and technical position indicate it may deserve more examination from investors using this blended method.
High Growth Momentum Profile
The ChartMill High Growth Momentum Rating combines different short-term earnings momentum items into one score. A rating of 7 for TFPM shows firm basic growth traits, which are important for momentum methods that depend on speeding business trends to push stock results. The given data details show several positive areas:
- Solid Earnings Growth: The company has shown major year-over-year EPS growth, with the Trailing Twelve Month (TTM) number up 75.5%. Recent quarterly comparisons display steady, high-double-digit growth, including 60% in the latest quarter and 100% three quarters before.
- Growing Profitability: A central measure for growth quality is increasing profit margins. TFPM's profit margin in the last reported quarter was 66.25%, up from 55.35% two quarters earlier, showing better operational efficiency and pricing ability.
- Positive Analyst Revisions: Forward estimates are moving upward, with the average EPS estimate for the next year changed higher by 10.47% over the past three months. This hints at rising analyst belief in the company's short-term outlook, a frequent trigger for momentum.
- Steady Earnings Surprises: The company has topped EPS estimates in each of the past four quarters, with an average beat of 9.54%. This record of surpassing forecasts can build positive feeling and continued buying activity.
These fundamental items, quickening earnings, growing margins, and positive estimate revisions, form the heart of what high growth momentum investors look for. They supply the fundamental "push" that can maintain a price trend.
Technical Strength and Setup Quality
While solid fundamentals are needed, the timing of an entry is often guided by the chart. TFPM's technical report shows a stock in a strong uptrend that is now resting, possibly giving a formation. You can see the full technical analysis here.
- Outstanding Technical Condition: TFPM receives a perfect Technical Rating of 10 out of 10. This score shows a stock in a firm and stable uptrend across several timeframes. Key supporting details include:
- Both its short-term and long-term trends are graded as positive.
- The stock is trading above all its main moving averages (20, 50, 100, and 200-day), which are all angled upward.
- It has done better than 95% of all stocks over the previous year, a mark of high relative strength.
- Favorable Setup Pattern: With a Setup Rating of 8, the stock is marked as being in a consolidation stage inside its bigger uptrend. The report states that "prices have been consolidating lately" and points out a recent bull flag pattern, a technical shape that often comes before a continuation of the earlier uptrend. This consolidation is what makes a possible entry area, as it lets the stock reduce overbought states and form a new base of support.
- Defined Risk Limits: The technical analysis finds a clear support zone between $33.06 and $33.82, made by a mix of trendlines and moving averages. For a trader, this gives a sensible area to set a stop-loss order, setting the risk of the trade if the breakout does not succeed. The report states there is "very little resistance above the current price," indicating a clear route higher if buying pressure returns.
A Meeting of Factors
The argument for TFPM within this particular method rests on the meeting of its high growth momentum fundamentals and its technically positive setup. The company's quickening earnings and cash flow growth supply a fundamental reason for the stock's firm 126% increase over the past year. The present pause, shown by a high Setup Rating, hints the trend may be resting before its next possible move. For investors, this combination tries to find a stock with a tested growth driver that is also technically placed for a probable continuation higher, with clear levels for handling risk.
Find More Possible Formations This review of Triple Flag Precious Metals shows how joining growth, momentum, and technical filters can find opportunities. Investors curious to locate other stocks that now meet similar standards of firm growth momentum, technical condition, and a good setup can view the pre-set screen here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data provided and should not be the sole basis for any investment decision. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal.
