DHT HOLDINGS INC (NYSE:DHT) is currently catching the attention of traders who follow the Mark Minervini playbook. The stock emerged from a screen that blends the strict technical criteria of Minervini’s Trend Template with a focus on high growth momentum (HGM). This combined approach is designed to find stocks that are not only in a strong, sustainable uptrend but also backed by accelerating fundamental growth, the kind of strong setup that often precedes outsized moves. Below, we break down how DHT fits this dual framework.
Meeting the Mark Minervini Trend Template
Minervini’s Trend Template is a set of eight technical rules that ensures a stock is in a confirmed Stage 2 uptrend, with tight price behavior and strong relative strength. DHT checks every box:
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Current price above 150-day and 200-day moving averages: The stock is trading at $18.27, well above its 150-day SMA of $14.66 and its 200-day SMA of $13.90. This confirms a strong long-term uptrend.
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150-day and 200-day moving averages are rising: Both moving averages are sloping upward, with the 200-day SMA climbing from $13.86 to the current $13.90. This indicates sustained institutional accumulation.
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50-day SMA above both 150-day and 200-day SMAs: The 50-day average sits at $18.02, above the 150-day and 200-day lines. This alignment signals strong short-term momentum backing the longer-term trend.
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Current price at least 30% above its 52-week low: DHT’s 52-week low is $10.61, meaning the current price is roughly 72% above that level, comfortably clearing the 25% minimum threshold.
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Current price within 25% of its 52-week high: The stock is trading about 11% below its 52-week high of $20.55, well within the 25% proximity rule. Stocks near their highs tend to lead during bull phases.
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Relative strength (RS) score of at least 70: DHT’s ChartMill Relative Strength ranks at 90, meaning it outperforms 90% of all stocks in the market. This is a key Minervini filter for identifying true market leaders.
High Growth Momentum Signals
Beyond the technical setup, DHT also passes the High Growth Momentum screen, which requires an HGM rating of at least 4 out of 10. The rating looks at both earnings and revenue growth acceleration, earnings surprise history, and upward estimate revisions, all hallmarks of companies with accelerating fundamental performance.
DHT’s fundamental picture shows encouraging signs despite a mixed recent earnings history. Here are the key highlights:
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EPS growth Q2Q (most recent quarter): +20.6%, a sharp acceleration from the previous quarter’s -19.5% and the quarter before that at -11.1%. This sequential improvement is exactly what Minervini looks for, a trend of acceleration.
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Year-over-year EPS growth (next quarter estimate): A massive +251% is projected, based on analyst estimates. This dramatic turnaround reflects improving industry conditions.
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Revenue growth Q2Q (most recent quarter): +37.7%, a significant reversal from the prior quarter’s -24.5%. Top-line expansion is critical for sustainable earnings growth.
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Profit margins are expanding: The most recent quarterly profit margin of 45.8% is up from 41.7% in the prior quarter and 37.2% three quarters ago. This shows the company is generating more profit from each dollar of revenue, a quality Minervini prizes.
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Upward estimate revisions: The average next-year EPS estimate has been revised up by 31.8% over the last three months, while next-year revenue estimates have been raised by 20.7%. Analyst upgrades are a strong catalyst for momentum.
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Earnings and revenue surprises: DHT beat estimates once in the last four quarters. While the average beat percentage is negative, the most recent positive surprise signals a potential inflection.
The combination of accelerating EPS growth, rising revenue, expanding margins, and analyst upgrades fits the high-growth profile Minervini describes in "Think and Trade Like a Champion", companies that "make new highs for a reason."
Technical Rating and Setup Quality
According to ChartMill’s proprietary scoring system, DHT earns a Technical Rating of 10 out of 10, the highest possible, and a Setup Quality score of 8 out of 10. The full technical report can be viewed here.
Highlights from the report:
- Trend: Both short-term and long-term trends are positive. The stock’s 12-month performance beats 90% of all stocks.
- Consolidation: Prices have been trading in a range between $17.11 and $18.99, forming a tight base near support. This is a classic Minervini Volatility Contraction Pattern setup.
- Support and resistance: A strong support zone exists around $18.03 (50-day SMA and trendline), while resistance is near $18.46-$18.52. A buy-stop order above this resistance could offer a clean entry.
- Volume: Average daily volume is over 5 million shares, ensuring adequate liquidity for position scaling.
The report also notes a potential trade setup with an entry at $18.53 (above resistance) and a stop at $17.99 (below support), risking about 2.9% per share. For a 25% position size, this would represent a modest 0.73% portfolio risk.
Finding More Opportunities
If DHT fits your criteria, many other stocks pass the same combined Minervini Trend Template + High Growth Momentum screen. You can view the full, updated list by [clicking here to access the live screener](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>, which updates daily with new candidates.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own due diligence and consider seeking professional financial advice before making any trades.