Finding Leading Stocks

The Heat Map Said Shipping. The Stock Scan Said $FRO.

Marine shipping has been one of the strongest industry groups for some time. You can see it on our MTS Velocity heat map, and you can see it showing up in our stock screens.

Today, $FRO stood out among the volume movers meeting my CANSLIM-based screening criteria:

• Big earnings and sales growth

• Strong margins

• High relative strength

• A strong industry group

And look at the trend it has formed this September. The moving averages are stacked exactly how I like them:

10-day > 20-day > 50-day > 200-day. All pointing higher.

Marine Shipping Is Showing Exactly What O’Neil Taught

“The majority of the leading stocks are usually in leading industries.” — William O’Neil, How to Make Money in Stocks

Look at the Marine Shipping strength in MTS Velocity. The group ranks #3 out of 140 industry groups, with a blended relative strength rating of 98.

EDRY, TNK, SB, TRMD, FRO, DHT. Multiple names are advancing together, with strong earnings growth and relative strength showing up across the group. This is exactly why I look beyond an individual stock’s chart and check what its peers are doing.

DHT is one example, working through resistance near $20.64 after a multimonth base. The attached screen shows quarterly earnings growth of approximately 249%, sales growth of 122%, and fund ownership climbing from 222 to 328 funds since December 2024.

Strong fundamentals. An improving chart. A leading industry group behind it.

That doesn’t make every shipping stock a buy. O’Neil emphasized selecting the leaders within strong groups, and we still need a proper entry and a defined exit if the trade fails.

Before you buy a stock, look at the company it keeps.