10 Industrial Stocks Poised to Break Out

by Daniel Putnam | February 16, 2012 8:30 am

As the broader market rally continues to bring individual stocks near their highs of earlier last summer, the list of potential breakout candidates grows. The energy[1] and technology[2] sectors both have been fertile ground in which to find stocks on the verge of breaking out to new high ground, and now the industrial sector is setting up as a source of opportunity — providing, of course, that the broader market can hold up.

One way to play this is simply to use the Select Sector Industrial SPDR (NYSE:XLI[3]) ETF, which closed Wednesday 5.9% short of its 52-week high of $38.98. But for those who prefer the higher-beta potential of individual stocks, here are a number of names to consider:

FedEx

Click to EnlargeNYSE:FDX[4]

Wednesday’s close: $94.15

Breakout level: $98.66

Percent move needed for breakout: 4.8%

 

This is the fourth time in two years that FDX has entered the $95-$100 range. While a break above $98.66 still would leave the stock well short of its all-time high above $120, set in 2007, note that United Parcel Service (NYSE:UPS[5]) already has moved out to a new high off of a similar formation as FDX. This bodes well for FedEx if the broader market holds up.

Canadian National Railway

Click to EnlargeNYSE:CNI[6]

Wednesday’s close: $77.53

Breakout level: $81.26

Percent move needed for breakout: 4.8%

 

Similar to FedEx, a number of CNI’s industry peers have broken out to new highs in recent months, among them Union Pacific (NYSE:UNP[7]), Canadian Pacific Railway (NYSE:CP[8]) and Kansas City Southern (NYSE:KSU[9]).

Caterpillar

Click to EnlargeNYSE:CAT[10]

Wednesday’s close: $112.53

Breakout level: $116.55

Percent move needed for breakout: 3.6%

 

 BorgWarner

Click to EnlargeNYSE:BWA[11]

Wednesday’s close: $80.58

Breakout level: $82.28

Percent move needed for breakout: 2.1%

 

 Fiserv

Click to EnlargeNASDAQ:FISV[12]

Wednesday’s close: $64.65

Breakout level: $66.06

Percent move needed for breakout: 2.2%

 

Praxair

Click to EnlargeNYSE:PX[13]

Wednesday’s close: $107.66

Breakout level: $111.74

Percent move needed for breakout: 3.8%

 

Heico

Click to EnlargeNYSE:HEI[14]

Wednesday’s close: $58.43

Breakout level: $61.97

Percent move needed for breakout: 6.1%

 

Eagle Materials

Click to EnlargeNYSE:EXP[15]

Wednesday’s close: $33.27

Breakout level: $33.66

Percent move needed for breakout: 1.2%

 

Acuity Brands

Click to EnlargeNYSE:AYI[16]

Wednesday’s close: $59.23

Breakout level: $61.45

Percent move needed for breakout: 3.7%

 

Crane

Click to EnlargeNYSE:CR[17]

Wednesday’s close: $49.06

Breakout level: $52.38

Percent move needed for breakout: 6.8%

 

While these 10 charts look to be the most compelling, four others also have the potential for a breakout to new highs: Honeywell International (NYSE:HON[18]), which is 5.6% away from breaking out; Ball Corp. (NYSE:BLL[19]), 2.3%; Wabtec (NYSE:WAB[20]), 8.2%; and Carlisle Cos. (NYSE:CSL[21]), 8.1%.

As of this writing, Daniel Putnam did not hold a position in any of the aforementioned securities.

Source URL: https://investorplace.com/2012/02/10-industrial-stock-charts-to-watch-fdx-cni-cat-bwa-fisv-px-hei-ayi-cr-exp/

---