In the search for stocks with high potential, many investors join careful technical study with attention to fundamental growth. One well-known method that mixes these areas is the system made popular by Mark Minervini. His method, often called the SEPA (Specific Entry Point Analysis) system, requires that a stock first show a strong, clear uptrend using a fixed "Trend Template." This technical base is then combined with solid and speeding fundamental growth in earnings and sales. The aim is to find market leaders early in their large price increases, where the combination of good price movement and better business results makes a positive risk/reward situation for investors focused on momentum and growth.
VOX ROYALTY CORP (NASDAQ:VOXR), a company centered on mining royalties for precious metals, recently appeared from a stock screen made to find securities that meet both the Minervini Trend Template and show high growth momentum. This two-part filter tries to separate companies that are both in a technically good uptrend and supported by speeding fundamental performance.
Reviewing the Technical Trend: The Minervini Template
The Minervini Trend Template gives a step-by-step list to make sure a stock is in a verified, long-term uptrend (Stage 2), staying away from weaker resting or falling periods. For a stock like VOXR, meeting these conditions is the first barrier it must cross.
A look at the main technical measures shows VOXR fits closely with the template's needs:
- Price vs. Moving Averages: The present price trades above all main simple moving averages (50-day, 150-day, and 200-day). Importantly, the 50-day SMA ($5.53) is above the 150-day SMA ($4.90), which is itself above the rising 200-day SMA ($4.51). This order shows a sound, structured uptrend across several timeframes.
- Nearness to Highs: The stock's price is about 91% above its 52-week low of $2.97, showing major recovery and force. It is also trading within 15% of its 52-week high of $6.59, a sign it is behaving like a market leader staying near its top.
- Relative Strength: With a ChartMill Relative Strength (CRS) score of 86.35, VOXR is doing better than about 86% of all stocks in the market over the last year. Minervini states that real leaders usually have RS scores above 70, ideally in the 80s or 90s, which VOXR meets.
This technical view points to institutional buying and a continued uptrend, forming the needed "trend" part of the Minervini SEPA method.
Examining the Growth Momentum
While a forceful chart is key, Minervini's method gives the same weight to the fundamental "engine" moving the price action. The screen used a "High Growth Momentum" (HGM) filter, which looks at the speed and quality of a company's earnings and sales growth. For a smaller, growth-focused company like VOXR, very fast fundamental progress can be the cause for a continued revaluation.
The given data points out several areas of very strong fundamental speeding:
- Earnings Growth Jump: The latest quarter shows very high year-over-year EPS growth of 550%. The previous quarter also showed strong growth of 100%. On a trailing twelve-month (TTM) basis, EPS has grown by 318.75%. This sequence of sharp speeding is just what growth investors and methods like Minervini's look for, as "big earnings draw big attention" from bigger investors.
- Revenue Increase: Top-line growth is also solid, with the last quarter reporting sales growth of over 154% year-over-year. Analyst guesses for the next quarter predict more very fast growth of nearly 197%.
- Cash Flow Creation: The company is creating positive free cash flow (FCF per share of $0.02 on a TTM basis), an important measure for royalty companies that often have lower running costs than standard miners.
This mix of three-digit percentage growth in both profits and sales shows a fundamental cause is active, meeting the "fundamentals" and "catalyst" parts of the SEPA method. It suggests the company's royalty collection is entering a more fruitful stage, changing into much higher financial outcomes.
Technical Condition and Setup Summary
Based on the ChartMill Technical Report, VOXR gets a perfect Technical Rating of 10/10, showing very good condition across short and long-term trends. The report states the stock is a high-level performer, with its increases well spread over the past year. Both the short-term and long-term trends are rated as good, supporting the Trend Template study.
The Setup Quality Rating is 7/10. The report concludes that while the technical rating is very good, the setup quality is "only medium at this time" because of recent price movement, making a perfect, low-risk entry point less defined. It proposes waiting for a calm period to form a tighter pattern. This is a careful thought, as the Minervini method strongly focuses on exact, low-risk entry points often seen in "Volatility Contraction Patterns" (VCPs).
You can see the full, detailed technical study for VOXR here: ChartMill Technical Report for VOXR.
Conclusion
VOX ROYALTY CORP shows a strong example of a stock that currently meets the two filters of a good technical trend and high-growth fundamental momentum. Its chart form fits the strict conditions of the Minervini Trend Template, showing a continued Stage 2 rise. At the same time, its very fast recent earnings and sales growth give the fundamental cause that can support more price gains. For investors using a growth momentum method, VOXR stands for the kind of candidate that deserves more detailed study, with the knowledge that finding an exact, low-risk entry point, as indicated by the medium setup score, is the next important step.
Find More Possible Candidates The study of VOXR came from a directed screen joining the Minervini Trend Template with High Growth Momentum filters. To see other stocks currently passing this strict two-part criteria screen, you can use the screen here: High Growth Momentum + Trend Template Screen.
Disclaimer: This article is for information and learning only. It is not meant as investment advice, a suggestion, or an offer to buy or sell any security. The study is based on given data and specific screening methods; past results do not show future outcomes. Always do your own complete research, think about your personal money situation and risk comfort, and talk with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.