For investors looking to join solid earnings momentum with positive technical patterns, a multi-factor screening method can be a useful instrument. One practical tactic uses selecting stocks that show firm basic business expansion, judged by a High Growth Momentum (HGM) score, while also showing good price movements and helpful chart patterns, shown by high Technical (TA) and Setup scores. This process tries to find firms where speeding basics might be ready to start the next part of a price rise, giving a combination of expansion and timing signs.
Triple Flag Precious Metals Corp. (NYSE:TFPM) comes from such a filter, showing a strong case for high-expansion momentum investors. As a streaming and royalty firm with a varied collection linked to 237 precious metals assets, its operational plan gives indirect contact to gold and silver prices without the straight working risks of mining.
High Growth Momentum Basics
The firm's basic picture matches firmly with the needs wanted by expansion and momentum plans. The HGM score joins main parts like earnings speed increase, estimate changes, and profit margin growth, factors important for keeping price momentum. Triple Flag's newest results display this active expansion:
- Outstanding Earnings Expansion: The firm has shown forceful year-over-year earnings per share (EPS) expansion. The newest quarter had EPS rise 83.3% against the same time last year, after earlier quarters of 60%, 84.6%, and 66.7% expansion. This steady high-double and triple-digit growth is a sign of firm momentum.
- Good Estimate Changes: Analyst feeling is getting stronger, a main part of the HGM score. Over the last three months, the average estimate for next year's EPS has been changed higher by about 19%, showing rising belief in the firm's future earnings.
- Firm Sales and Earnings: Income expansion stays solid, with the last quarter up over 60% year-over-year. Also, the firm keeps very high profit margins, with the last stated quarter at 64.6%. This skill to turn income into earnings well is a notable positive for an expansion firm.
Technical Firmness and Setup Grade
While firm basics give the "why," technical study gives view into the "when." As per the full ChartMill Technical Report, Triple Flag's chart shows a positive shape.
- Top Technical Score: TFPM gets a best-level Technical Score of 10 out of 10. This number shows a steady and strong movement over both short and long time periods. The stock is trading above all main moving averages (20, 50, 100, and 200-day), and its long-term movement is firmly good, having done better than 81% of all stocks over the past year.
- Helpful Setup Shape: With a Setup Score of 7, the stock is making a tightening shape inside its wider upward movement. The report notes lower changeability as prices have moved in a band over the past month, which can sometimes come before a new directional shift. A clear base area is found between $35.29 and $36.08, giving a sensible place for a stop-loss order if a breakout trade is started.
- Market Setting: Even as the wider S&P 500 shows a neutral short-term movement, TFPM keeps its own good short and long-term path, pointing to separate firmness that might be pushed by its special basic helpers in the precious metals area.
Joining of Expansion and Timing
The joining of these points is what makes TFPM a notable pick for the stated plan. The high HGM score checks the firm is in a forceful earnings speed increase stage, meeting the main idea of momentum investing: buying stocks that are showing better and rising earnings. The excellent TA and Setup scores show the market is seeing this basic firmness, with the price action tightening in a good way after a notable rise. This shape hints the stock might be building force for its next shift, possibly giving a good risk/reward entry point lined up with the continuing expansion story.
For investors wanting to find other firms that meet this mix of high-expansion momentum and technical breakout shapes, you can view the set filter here.
Notice: This writing is for information only and does not make investment guidance, a suggestion, or a deal to buy or sell any security. The study is based on given information and should not be the only ground for an investment choice. Investors should do their own full check and think about their personal money situation and risk comfort before making any investment. Past results are not a guide for future results.