For investors looking to join fundamental growth momentum with timely technical entry points, a multi-layered screening method can be very useful. By selecting for stocks that show solid earnings and sales speed—traits valued by high-growth momentum plans—and at the same time present sound technical condition inside a constructive holding shape, traders try to match strong fundamental forces with good risk/reward arrangements. This process tries to find companies where speeding business results is happening together with a stock chart ready for its next possible step up.
TRIPLE FLAG PRECIOUS METALS CORP (NYSE:TFPM) appears from such a screen, offering a strong case for this paired plan. The streaming and royalty company, which gives access to gold and silver output from a varied collection of 237 assets, displays the signs of a business in a solid growth stage while its stock chart indicates a time of holding may be coming to an end.
Fundamental Growth Momentum
The heart of a high-growth momentum plan rests in finding companies with speeding financial results, and Triple Flag's latest reports give clear proof. The company's ChartMill High Growth Momentum Rating of 7 shows force across several main growth and momentum measures.
- Strong Earnings Growth: The company's earnings per share (EPS) growth on a year-over-year basis is very solid. The latest quarter saw EPS jump 83.3% against the same quarter last year. This comes after earlier quarters of 60.0%, 84.6%, and 66.7% growth, showing a continued and forceful rise in profits.
- Solid Sales Increase: Revenue growth is matching step, with the last quarter showing a 60.2% rise year-over-year. This top-line force is important, showing that earnings growth is backed by growing business size and not only cost reduction.
- Positive Surprises and Revisions: A full record of exceeding EPS guesses over the last four quarters, with an average beat of 10.3%, shows the company is regularly doing better than expected. Also, analysts have been actively changing their guesses upward, with the average EPS guess for the next year climbing over 19% in the last three months, a solid sign of trust in the near-term growth path.
- Growing Profitability: The company's profit margin in the last reported quarter was a sound 64.6%, and this measure has shown a general path of growth from 55.3% three quarters ago. Growing margins on top of fast sales growth is a strong mix for bottom-line speed.
These points together create an image of a company with notable fundamental momentum, a main need for the investment method. The speeding earnings and sales, joined with positive analyst feeling, are exactly the forces high-growth screens are made to find.
Technical Condition and Setup Quality
While solid fundamentals give the "why," the technical view gives the "when." According to the detailed ChartMill Technical Analysis Report, Triple Flag's stock shows both excellent technical condition and a hopeful setup shape.
The report gives TFPM a Technical Rating of 9 out of 10, putting it with the market's front runners from a trend view. Main technical good points include:
- Long-Term Strong Performance: The stock is doing better than 91% of all stocks over the past year, with increases that are seen as being "well spread" over the time, pointing to a steady upward trend.
- Solid Trend Agreement: All main moving averages (20, 50, 100, and 200-day) are rising, confirming the stock is in a set bullish trend across many timeframes.
Maybe more important for timing an entry, the stock gets a Setup Rating of 8. This shows the stock is now in a holding stage after its earlier climb, which can often come before a new breakout. The technical report states that "prices have been holding lately and the movement has been lessened," with very little block immediately above the present price. The report finds several clear support areas below, which helps in setting a sensible level for a protective stop-loss order. This mix—a solid base trend (Technical Rating 9) paired with a close, low-movement holding (Setup Rating 8)—is exactly what the screening process tries to locate.
A Meeting Opportunity
For investors using a high-growth momentum plan, Triple Flag Precious Metals shows a meeting of main measures. The company's fundamental profile, marked by speeding earnings, growing margins, and positive guess revisions, meets the growth momentum need. At the same time, its stock chart displays the typical shape of a market leader pausing inside a forceful upward trend, giving a possible entry point with clear risk.
This agreement is the goal of the paired screen: to sort the market for companies where the engine of business momentum is still loud, but the stock itself is briefly waiting in a technical pause, possibly set for the next step up.
Find More Possible Setups This review of TFPM came from a particular screen for high-growth momentum stocks with good technical setups. You can run this screen yourself and see the present results by going to the High Growth Momentum Breakout Setups page.
Disclaimer: This article is for information only and does not make investment advice, a suggestion, or an offer to buy or sell any security. The review is based on given data and shows the situation at the time of writing. Investing includes risk, including the possible loss of original funds. You should do your own study and talk with a qualified financial advisor before making any investment choices.