Investors looking to join solid fundamental growth with well-timed technical entry points frequently use a multi-layered screening process. One useful technique is to sort for stocks that show firm earnings momentum, a sound technical trend, and a positive price pattern ready for a possible breakout. This method tries to find companies not just increasing at a quickened rate but also trading in a way that points to institutional buying and a lower-risk entry chance. A recent screen using these ideas, searching for a High Growth Momentum Rating over 4, a Technical Rating over 7, and a Setup Rating over 7, has identified TRIPLE FLAG PRECIOUS MET (NYSE:TFPM) as a candidate for more review.
Fundamental Growth Momentum
The center of the high-growth momentum method is finding companies with quickening business results, and Triple Flag Precious Metals makes a strong argument based on the given metrics. The company's High Growth Momentum Rating of 6 shows firmness in several important areas that momentum investors focus on.
- Earnings Acceleration: The quarterly earnings per share (EPS) growth numbers display a strong pattern. While growth stays high, the order from the last four quarters—100.0%, 66.7%, 84.6%, to 60.0%—shows the company has been providing major, above-trend increase. This is a standard signal of operational momentum.
- Increasing Profitability: Possibly even more important than revenue growth is the increase of bottom-line efficiency. Triple Flag displays a clear pattern of increasing profit margins over the last four reported quarters, moving from 55.6% to 66.3%. This shows the company is not only growing revenue but is becoming more profitable as it gets larger, a main idea of quality growth.
- Steady Earnings Surprises: The company has exceeded EPS estimates in each of the last four quarters, with an average surprise of 9.54%. This steady outperformance versus forecasts often results in positive analyst updates and can be a reason for more price gains, as it builds trust and implies management forecasts may be cautious.
- Firm Yearly Growth: Backing the quarterly numbers is notable yearly growth. EPS grew more than 75% on a trailing twelve-month basis, while revenue rose almost 40%. This twin growth engine supports the company's fundamental firmness.
These elements together validate the stock's presence in a high-growth momentum screen. The method looks for companies where business momentum is probable to be acknowledged and valued by the market, and Triple Flag's quickening earnings, increasing margins, and dependable beats form a sound base.
Technical Firmness and Setup Quality
A sound fundamental story must be paired with a positive price structure to find a possible entry. According to the detailed ChartMill Technical Report, Triple Flag performs well here too, receiving a high Technical Rating of 9 and a firm Setup Rating of 7.
The Technical Rating of 9 puts TFPM with the market's front-runners from a trend view. The report mentions a steadily positive long-term trend, with the stock doing better than 94% of all other stocks over the past year. It trades above important rising moving averages (the 50-day, 100-day, and 200-day), confirming the positive long-term structure. While the short-term trend is currently called neutral, the overall technical condition remains sound.
The Setup Rating of 7 is where the chance for timing becomes clear. This score shows the stock is making a consolidation pattern inside its bigger upward trend. The report describes prices consolidating in a range between about $32 and $40 after a major prior rise. This kind of action, where a stock absorbs its gains through sideways movement, often comes before the next upward move. The analysis finds a clear support area between $32.36 and $34.15, giving a logical zone for a stop-loss order to control risk. With almost no resistance seen directly above the current price, a clear move above the recent consolidation could indicate a restart of the upward trend.
A Merging Chance
Triple Flag Precious Metals shows a situation where fundamental momentum and technical position meet. For the growth momentum investor, the company's quickening earnings, increasing margins, and steady performance create a strong story. For the technically-focused trader, the stock's front-runner status (TA Rating 9) and its present consolidation giving a defined risk point (Setup Rating 7) present a clear chart setup.
This merging is exactly what the combined screening process is made to find: companies with the energy of business momentum that are also technically placed for a possible move. It sorts for stocks that are not only growing but are also being bought in a sound way, possibly preparing for a breakout.
Interested in finding more stocks that match this high-growth momentum breakout profile? You can run the screen yourself using this High Growth Momentum Breakout Setups Screen.
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Disclaimer: This article is for information only and does not form investment advice, a suggestion, or an offer to buy or sell any security. The review is based on data provided and screens described, which can change. Investing includes risk, including the possible loss of principal. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.
