When we think about generating heat, traditional oil and natural gas come to mind.
But there is one essential element used to heat grills, fireplaces, water heaters and more. It’s also used in farm equipment and backup generators.
I’m talking about liquified petroleum gas.
It is made by refining crude oil or processing raw natural gas.
This chart shows the growth of the liquified petroleum gas market from 2021 to 2030.
Over that time, Precedence Research expects the market to almost double to $271.6 billion!
Today’s Power Stock uses its fleet of ships to transport liquified petroleum gas around the world: Dorian LPG Ltd. (NYSE: LPG).
Dorian has a fleet of very large gas carriers (VLGCs) designed to transport high volumes of gas.
The company is all around the world, with offices in the U.S., Denmark, Greece and Singapore.
Fun fact: Dorian’s ticker is derived from what it specializes in: liquefied petroleum gas.
Dorian LPG stock scores a “Strong Bullish” 99 out of 100 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
LPG Stock: “Maximum Momentum” + Fantastic Value and Growth
Highlights from LPG’s most recent quarter include:
- Quarterly revenue of $76.8 million — up 22% from the same quarter last year.
- Cut its vessel operating costs by 15.8% compared to a year ago.
Those points show why LPG scores a 97 on our growth metric.
LPG also comes in as a great value buy.
Its price-to-sales and price-to-cash flow ratios are more than three times lower than its peer average.
This tells us LPG is an outstanding value compared to the rest of the oil and gas supporting activities industry.
From October 2021 to June 2022, LPG stock ran almost 85% higher to reach a 52-week high.
Broader market sell-offs have only caused the stock to trade flat, but it remains up over the last 12 months.
The stock is only 11.6% off that 52-week high, and I have a strong belief it will surpass it.
LPG scores a 99 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
While natural gas is the main element in producing electricity, liquified petroleum gas is used to generate heat.
With cold winter months approaching in the U.S. and Europe, the demand for that product will grow stronger.
LPG and its fleet are critical to getting that product where it’s needed the most.
That’s why it’s a great contender for your portfolio.
Stay Tuned: Innovative Data Power Stock Soars Higher
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on this Power Stock that creates hardware used to optimize edge computing.
Matt Clark, CMSA®
Research Analyst, Money & Markets
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