Investors looking for a systematic way to identify stocks that are both technically strong and fundamentally accelerating often turn to a dual-filter approach. One effective method combines Mark Minervini’s Trend Template, a rigorous technical checklist that confirms a stock is in a strong, sustainable uptrend, with a High Growth Momentum (HGM) rating. The HGM rating screens for companies showing accelerating earnings and sales growth, positive earnings surprises, and improving profit margins. Together, these filters aim to pinpoint stocks that are not only trending higher but are also backed by the kind of fundamental momentum that institutional investors tend to favor.
BW LPG Ltd (NYSE:BWLP) recently passed this combined screen, and a closer look at its technical and fundamental profile reveals why it qualifies as a potential candidate for both momentum-based and growth-oriented strategies.
Meeting the Minervini Trend Template
The Trend Template ensures a stock is in a well-established uptrend, minimizing the risk of buying into a declining or stagnant name. BWLP checks every box on this checklist.
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Moving Average Alignment: The current price of $18.43 is firmly above the rising 50-day SMA (17.11), the 150-day SMA (14.70), and the 200-day SMA (14.67). Critically, the 50-day SMA is above both the 150-day and 200-day SMAs, while the 150-day SMA also sits above the 200-day SMA. This perfect alignment is the hallmark of a healthy, long-term uptrend.
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52-Week Range: The stock is currently trading at $18.43, which is 87.5% above its 52-week low of $9.83, well past the 30% minimum threshold. It is also within 2.2% of its 52-week high of $18.84, showing it is acting with strength near its best levels of the year.
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Relative Strength: The ChartMill Relative Strength (CRS) score stands at 90.47, meaning BWLP is outperforming over 90% of all stocks in the market. This high RS ranking is a core tenet of Minervini’s method, which focuses on buying the leaders, not the laggards.
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Trend Direction: Both the short-term and long-term trends are rated as positive by the technical analysis, confirming momentum is firmly on the buy side.
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High Growth Fundamentals: The Acceleration Story
While the Trend Template confirms technical strength, the High Growth Momentum rating looks for fundamental acceleration. For BWLP, the story is one of a powerful quarterly turnaround, even if the trailing twelve-month numbers are weak.
The first article in this series explained that Minervini seeks out “Big earnings attract big attention.” The critical filter looks for a sharp reversal from a slowdown. Here is where BWLP shows explosive recent growth:
- Quarterly EPS Growth: After three consecutive quarters of year-over-year earnings declines (Q-3: -90%, Q-2: -59%, Q-1: -51%), the most recent quarter posted an astonishing +140.9% earnings growth. This is the classic “acceleration” pattern.
- Next Quarter Estimates: Analysts expect the momentum to continue, with the forward quarter estimated EPS growth projected at +600% .
- Sales Growth Confirmation: The revenue story matches the earnings turnaround. Sales growth has accelerated from -17% (Q-3) to +19% (Q-2), +17% (Q-1), and most recently +37% in the last reported quarter. This top-line strength supports the earnings rebound.
- Profit Margin Improvement: The profit margin has improved sequentially from 3.67% three quarters ago to 6.05% in the most recent quarter, demonstrating increasing efficiency and pricing power.
While the TTM numbers (EPS growth of -50%) reflect the difficult prior period, the accelerating quarterly trends are the primary signal for this screen. The company is demonstrating that it has turned a corner, a key catalyst for high-growth investors.
A Note on Valuation and Risk
While the momentum is strong, growth investors should note that the forward estimates are subject to change. The EPS revision for the next year has been revised down by -4.6% over the last three months, and revenue estimates for the next year have been lowered by -5%. This is a potential yellow flag that the rapid growth rate might be slowing. The trailing P/E is not provided, but the free cash flow is negative -$0.39 per share, suggesting the company is not yet self-funding its operations.
Technical Setup and Analyst View
From a pure technical perspective, the ChartMill report confirms the stock is a standout. The stock earns a perfect Technical Rating of 10 out of 10, reflecting strong and consistent performance across all timeframes. It also scores a Setup Rating of 8 out of 10, indicating a favorable consolidation pattern with a potential buy point above a defined resistance zone.
The support zone around $17.77 (a combination of moving averages) offers a logical stop-loss location, while resistance sits near $18.68. The report suggests a potential entry at $18.74 (just above resistance) with an exit stop at $17.72, limiting the downside risk to approximately 5.4% of the stock price.
Discover More High-Growth Setups
This stock was identified using a specific screen that combines Minervini’s trend template with a high-growth momentum filter. If you are looking for more stocks with similar characteristics, you can run the same screen yourself.
[View the full list of results from the High Growth Momentum + Trend Template screen here.](https://www.chartmill.com/stock/stock-screener?sid=718&f=sm50v_a_sm150v,sm50v_a_sm200v,sl_crs_70_X,sm200v_r,sm150v_a_sm200v,v1_50b100,cu_a_sm50v,cu_a_sm150v,cu_a_sm200v,sl_ratingHgm_6_X,exch_us&v=3&s=ta&sd=DESC&cpl=2&bc=true&nw=1&pam=1&pm=1&set=1&uc=7054723&dc=14111810&o1=3&op1=200,16711680&o2=3&op2=50,255&o3=1&o4=89&op4=40,1,10536676&cf=%28h%3E%3D%28wh520.75%29%29,%28cu%3E%3D%28wl521.3%29%29>
Summary
BW LPG (BWLP) presents a strong case for a momentum-based strategy. It passes all Minervini Trend Template rules, with a rising 200-day moving average, tight price action near a 52-week high, and an RS ranking in the 90th percentile. On the growth side, it shows a dramatic acceleration in quarterly EPS and sales growth, alongside improving profit margins, though the negative free cash flow and downward estimate revisions warrant caution.
The technical assessment rates the stock a 10 out of 10, with an excellent setup pattern. Investors can review the full technical analysis report for more detailed support and resistance levels by clicking the link below.
View the Full Technical Report for BW LPG (BWLP).
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading and investing in stocks involves risk, including the potential loss of principal. Always conduct your own due diligence and consider your own financial situation before making any investment decisions.