Wednesday's IBD 50 Stocks To Watch pick, fuel transporter Dorian LPG, is approaching a buy point on the stock market today. That makes Dorian LPG one of the best stocks to watch right now. Dorian shares rallied more than 2% Wednesday morning.
The Connecticut-based company operates a fleet of 25 vessels transporting liquefied petroleum gas (LPG). Traditionally, the main trading route in the LPG shipping industry has been from the Persian Gulf to Asia. However, the rise of the U.S. as a major LPG export hub has expanded routes from the U.S. to Asia and Europe.
Dorian LPG customers include Exxon Mobil, Chevron and other energy giants.
On Feb. 1, Dorian LPG reported fiscal third-quarter earnings of $2.62 per share, up more than 100% from last year. Revenue jumped 58% to $163.1 million.
"In North America, production of natural gas liquids continues to increase inventories to record levels. This was amidst an unseasonably warm start to the winter," commented Chief Commercial Officer Tim Hansen in the earnings call.
Meanwhile, Wall Street may be looking ahead at higher natural gas prices, pushing shares of Dorian higher.
"The LPG shipping market historically has been stronger in the spring and summer months in anticipation of increased consumption of propane and butane for heating during the winter months," the company said in the press release.
Dorian Rebounds Despite Weak NatGas Prices
After finding support around its long-term 200-day line in mid-February, Dorian shares are on the rebound.
Last week, the stock regained its 50-day moving average and is moving further up the right side of a cup base that has a 49.54 buy point, according to IBD MarketSurge chart analysis. With the stock about 18% away from that entry, investors should be on the lookout for a handle to form, which would offer a lower entry.
Dorian stock shows a 98 out of 99 IBD Composite Rating, according to IBD Stock Checkup. That makes it one of the best stocks to watch as oil prices continue to rally.
On the downside, the relative strength line remains far from its old highs, even as the stock price rebounds. That indicates big stock market underperformance. Look for that to improve if the stock continues its upward trajectory. Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on IBD Charts.
Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Ascendis Pharma | 161 | Flat base | |
| JFrog | 48.81 | Consolidation | |
| Interactive Brokers | 112.50 | Tight area |
Source: IBD Data As Of April 3, 2024
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