DT Midstream Inc (NYSE:DTM) has been identified by a specific screen built to find stocks that fit two different but fitting investment methods: the technical rules of Mark Minervini's Trend Template and the strict standards of high-growth momentum investing. This merged method looks for companies that are showing strong price movements and are also supported by improving business results, a pairing often seen in significant market successes. The screen selects stocks that meet Minervini's exact technical rules for being in a clear, strong upward move, while also having a High Growth Momentum (HGM) rating of 4 or higher, indicating better and gaining financial health.
A Technical Base: The Minervini Trend Template
Mark Minervini's Trend Template is a step-by-step way to spot stocks in a solid Stage 2 upward move. It goes past simple chart review by using a group of fixed technical rules. The main idea is to invest in strength, purchasing stocks that are already in a clear uptrend and indicating they are leaders, instead of trying to find a lowest price. For DT Midstream, the present technical view fits this template.
- Price Above Important Moving Averages: The stock's last price of $136.07 is above its rising 50-day ($129.56), 150-day ($117.70), and 200-day ($114.40) simple moving averages (SMAs). This order confirms a positive trend across different time periods.
- 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 "stacked" order is a clear sign of building price movement and buying by large investors.
- Nearness to Highs: At its present level, DTM is trading within 25% of its 52-week high of $143.67, an important Minervini rule that points to market leaders. At the same time, the price is more than 30% above its 52-week low of $83.30, confirming a major upward move is happening.
- Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 85.93, DTM is doing better than about 86% of the wider market. High relative strength is a key part of the Minervini method, as it finds stocks that are wanted and moving ahead of the market.
This group of technical points indicates DTM is in a sound, continuing uptrend, meeting the exact mechanical rules of a Minervini setup.
The Fundamental Driver: High Growth Momentum
While a strong chart is necessary, Minervini's full SEPA (Specific Entry Point Analysis) method stresses that the largest stock market successes are nearly always helped by strong fundamental growth. This is where the High Growth Momentum rating is very important. A high HGM score shows a company is not only growing, but that its growth speed is increasing across main financial measures. DT Midstream's recent financial results show this.
- Earnings Growth Increase: The company has shown a clear increase in its quarterly earnings per share (EPS) growth. The latest quarter showed year-over-year growth of 47.95%, a large rise from the 25.56% and 6.12% growth in the two prior quarters. This trend of increasing speed is a main reason for a high HGM rating and is what growth investors look for.
- Strong Revenue Growth: Top-line growth is also notable. Revenue growth has been steadily solid, with the last three quarters all showing year-over-year gains above 26%. This shows the company's main business is growing at a fast and steady rate.
- Solid Profitability: The company keeps sound profit margins in the mid-30% range, showing it can turn revenue growth into profits well. Stable, high margins are a sign of a good growth business.
This fundamental picture, increasing earnings on top of solid, steady revenue growth, gives the reason for the stock's strong technical move. It suggests large investors are likely buying into an improving business story.
Technical Condition and Setup Review
A look at the ChartMill Technical Report for DTM gives a combined view of its present status. The report gives the stock a full Technical Rating of 10 out of 10, stating a "consistent performance in both the short and longer term time frames." Both the short-term and long-term trends are rated as good, and the stock is performing with the wider market, which is also trading near highs.
The report also points out a fair Setup Rating of 6. It states that prices have been holding after a recent rise, with the stock trading between about $129 and $144 over the last month. This kind of pause or pullback inside a main uptrend can sometimes create a better risk/reward situation for new entries, as it allows for finding clearer support levels. The report finds key support areas near $125.39 and between $117.02-$118.92, which could act as logical places for stop-loss orders if a new position is started.
Finding Like Opportunities
The method that found DT Midstream Inc can be used in a step-by-step way to find other possible candidates. By joining the strict technical filters of the Minervini Trend Template with a screen for high fundamental growth momentum, investors can create a focused watchlist of leading stocks.
You can view the present results of this "High Growth Momentum + Trend Template" screen to see other qualifying stocks by clicking here.
Conclusion
DT Midstream Inc shows a situation where a sound technical trend is supported by notable fundamental growth. The stock meets the disciplined list of the Minervini Trend Template, confirming it is in a strong market uptrend with better relative strength. At the same time, its increasing earnings and revenue growth give a fundamental reason that fits the rules of high-growth momentum investing. This combination of technical strength and fundamental increase is what joined strategies aim to find, giving a structured way to spot possible leading candidates in the market. As always, any possible investment should be thought about with one's complete portfolio plan and risk level.
Disclaimer: This article is for information and learning only. It is not meant as investment advice, a suggestion, or an offer or request to buy or sell any securities. The review shown is based on data and methods thought to be dependable, but its correctness is not guaranteed. Investing in stocks has risk, including the possible loss of the original amount invested. You should do your own research and talk with a qualified financial advisor before making any investment choices.