Energy Leader In Buy Range Despite Market Correction

Energy leader Dorian LPG (LPG), Monday’s pick for IBD 50 Growth Stocks To Watch, is in buy range despite a new stock market correction. That makes LPG one of the best stocks to buy and watch in today’s market.

Crude oil revisited $90 per barrel on Friday as uncertainty on future global supply continues amid the Israel-Hamas war. Other recent factors weighing on crude prices include the U.S. easing sanctions on Venezuela, Iran calling for an oil embargo on Israel, and a larger-than-expected drawdown in crude inventory.

West Texas intermediate futures sold off nearly 3% Monday, trading below $86 a barrel. LPG stock rose more than 1% Monday midday despite the sharp decline in oil prices. Dorian is a leading owner and operator of very large gas carriers.

In August, the Stamford, Conn.-based liquefied petroleum gas shipper said it earned $1.21 a share on sales of $111.6 million for its fiscal first quarter. Year over year, Dorian earnings surged 116% as sales jumped 45%.

Fiscal second-quarter earnings results are due in early November. Wall Street expects the company to earn $1.61 a share on revenue of $127.2 million, according to FactSet.

As a result of big earnings growth in recent quarters, LPG stock boasts a near-perfect 98 Earnings Per Share Rating, according to IBD Stock Checkup. This rating takes into account earnings growth and profit stability over the past three years. The two most recent quarters are weighted more heavily.

LPG stock also has a perfect 99 IBD Composite Rating after a tremendous stock price move since January 2022. That fundamental and technical strength makes LPG one of the best stocks to buy and watch.

Learn How To Time The Market With IBD’s ETF Market Strategy

LPG Stock Hits Buy Point

LPG stock is in buy range after a strong move past a cup-with-handle entry at 28.69, per IBD MarketSmith pattern recognition. While the stock is out of the 5% buy zone past the 28.69 entry, another handle entry is also in play at 30.25. But the market correction should keep investors on the sidelines.

Bullishly, the relative strength line hit a new high last week, confirming the strength of the stock’s recent advance. A strong RS line during a weak market environment is a big positive.

Strong fundamentals, along with powerful gains over the last 21 months, also contribute to LPG’s high standing and make it worthy of consideration.

Keep in mind, with the stock market outlook in market correction — and a 0%-20% recommended exposure range — investors should be playing defense until the major stock indexes improve.