DCP Midstream Feels the Big Money Energy

And the liquid natural gas producer could rise even more due to strong earnings and a nearly 4.5% current dividend. But another likely reason is Big Money lifting the stock.

Big Money Attracted to DCP Midstream

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And DCP Midstream has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals DCP has made since 2020.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 20 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

• 1-month outperformance vs. Energy Select Sector SPDR ETF (+7.2% vs. XLE)

Outperformance is important for leading stocks.

DCP Midstream Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, DCP Midstream has been growing sales at double-digit rates and is trading at a modest forward price-to-earnings ratio. Take a look:

• 1-year sales growth rate (+84.3%)
• Forward P/E ratio (8.3x earnings)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, DCP has recently become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

DCP has a lot of qualities that are attracting Big Money. It made its first appearance on this list last week on 04/19/2022, so Big Money may have a new gem on its hands. The blue bar below shows when DCP Midstream was a top pick – that upward trajectory is beautiful:

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if DCP makes additional appearances in the years to come. Let’s tie this all together.

DCP Midstream Price Prediction

The DCP Midstream rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a nearly 4.5% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in DCP at the time of publication.

Learn more about the MAPsignals process here.

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