DT Midstream Inc (NYSE:DTM) has been identified by a system made to find stocks that fit a strict growth and momentum investment method. This method uses the detailed technical standards of Mark Minervini’s Trend Template together with an emphasis on fundamental growth momentum. The aim is to locate companies that are in strong price uptrends and also supported by improving business results, forming a possible combination of technical and fundamental strength.
The Minervini Trend Template offers a structured way to sort for stocks showing clear, continued uptrends, making sure an investor is moving with the current market momentum. At the same time, a High Growth Momentum (HGM) rating measures the speed and quality of a company's earnings and sales growth. A stock that fits both groups of standards presents a strong argument for more review, as it indicates institutional interest is fueled by better business foundations.
A Clear Technical Uptrend
A look at DTM’s chart and main metrics shows it clearly fits the main standards of the Minervini Trend Template. This template is made to remove unstable or poor stocks, concentrating only on those showing clear institutional buying and trend strength.
- Price Above Key Moving Averages: DTM’s current price is well above its rising 50-day ($119.90), 150-day ($111.25), and 200-day ($109.17) simple moving averages (SMAs). This ordered position is a standard sign of a sound Stage 2 advance.
- Moving Average Order: The 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. This positive order across timeframes confirms the trend’s soundness and momentum.
- Nearness to Highs: Trading near $124, DTM is within 2% of its 52-week high of $126.37 and is about 49% above its 52-week low. Minervini’s method stresses that real market leaders usually reach new highs, not recover from large lows.
- Strong Relative Performance: With a ChartMill Relative Strength (CRS) score of 76, DTM is doing better than a large part of the wider market. This relative performance is an important filter, as it finds stocks that are leading the market higher, not just following a trend.
This technical view shows DTM is in a verified uptrend with good momentum, meeting the main need for a Minervini-style setup: trading with favorable conditions.
Fundamental Growth Momentum Reviewed
While the Trend Template confirms a strong chart, the High Growth Momentum rating examines the fundamental driver that could be causing that price movement. DTM’s recent financial results show several positive improvements that fit with growth investment ideas.
- Earnings Improvement: The latest quarter showed a large year-over-year EPS growth of 25.6%, a clear increase from the 6.1% and 7.1% growth seen in the two earlier quarters. This pattern of improving bottom-line growth is a main feature looked for by momentum investors.
- Strong Sales Growth: Revenue growth has been consistently good, with the last three quarters showing year-over-year gains of 26.6%, 26.6%, and 26.3%. This top-line strength gives a firm base for earnings growth and points to more business activity.
- Analyst Sentiment: The average estimate for next year’s earnings has been increased by 1.5% over the past three months, while revenue estimates have been increased by 0.9%. Positive changes often come before continued institutional buying.
- Profitability: The company keeps sound profit margins, with the last reported quarter at 36.6%. Good and steady margins during a time of revenue growth can be a signal of operational efficiency.
These parts create a positive fundamental setting, suggesting the recent price trend may be backed by real gains in the company’s financial path.
Technical Condition and Setup Review
Beyond the basic Trend Template filters, ChartMill’s own analysis gives a more detailed look at DTM’s technical condition. The stock gets a perfect Technical Rating of 10 out of 10, putting it in the highest group of all stocks from a trend, momentum, and relative performance view. Both its long-term and short-term trends are rated as positive.
Also, the analysis finds an acceptable setup quality, with a rating of 8. The report states that prices have been moving in a range between about $116 and $126 over the past month, forming a possible base near highs. A recent "Pocket Pivot" signal, a volume-based sign of buying, adds another positive technical note. The analysis proposes a support area around $120, which could act as a reasonable reference point for managing risk.
For a full explanation of the support levels, resistance, and a detailed trade setup example, you can see the complete ChartMill Technical Analysis Report for DTM.
Locating Comparable Opportunities
DT Midstream Inc offers an example of a stock that fits a joined technical and fundamental momentum strategy. For investors looking to search for other securities that meet similar standards of strong trending behavior joined with high growth momentum, the predefined screen is ready for use.
You can run the "High Growth Momentum + Trend Template" screen yourself to see current market candidates by clicking here.
Disclaimer: This article is for informational and educational purposes only. It is not a recommendation to buy or sell any security. The analysis is based on data provided and certain quantitative screens, which have inherent limits. Always do your own complete research, considering your financial situation, risk tolerance, and investment goals, and think about talking with a qualified financial advisor before making any investment decisions. Past performance is not a guide to future results.
