Ouch.
The Fed fallout just got worse, with the Dow suffering its worst day since March after negative data on home sales and consumer confidence. All other indexes closed lower as well.
Are we in for a more severe correction?
Again, it remains to be seen.
But as always, there are always stocks that can deliver strong gains even amid a market pullback…
And that’s what today’s daily stock pick is all about.
It shouldn’t surprise you to hear it’s from the energy industry…
But what makes this stock stand out is:
- It’s just 2% away from blowing past a defined resistance level – which would take it to new all-time highs
- It recovered its 21-day moving average at the beginning of this month, and it’s since successfully served as a support level
- And it’s still trading at a P/E ratio of under 6x
That’s a triple threat that’s a rare find in this market.
Dorian LPG Ltd. (LPG)
LPG is a tanker company that ships liquefied petroleum gas around the world with a fleet of 25 modern gas carriers.
It has a relatively small market cap, coming in at just under $1.2 billion currently – but that’s already much higher than where it was at the beginning of the year. LPG’s stock has surged 60% this year, with the stock touching a new all-time high at the beginning of August.
It’s pulled back a tiny bit since then. But as I said, it’s now just 2% away from that level – and momentum is on its side after having reclaimed its 21-day moving average which now serves as support.
You can wait until it breaks past the $30 mark if you want a clearer signal that LPG is breaking out. If it does, just sit back and enjoy the ride.
To your wealth,
Felix @ Ace of Investing
