Today we have a strong new growth stock from the momentum analysts at Cabot Top Ten Trader.
“Consumers know Trimble Navigation Ltd. (TRMB, $59) is a leading manufacturer of GPS systems, used by drivers and hikers the world over as an aid to navigation. But that’s just the tip of the iceberg! Trimble’s main business is serving commercial interests, from surveyors to miners to truckers to farmers to utility workers.
“All these workers have specialized needs and Trimble is expert at meeting them, from the famer whose tractor allocates fertilizer based on its location in the field to the power line engineer who uses Trimble tools to calculate sag-tension numbers to the drone pilot who relies on Trimble tools to hit his target. The company has seen revenues triple over the past eight years, and there’s no doubt more growth is ahead. In fact, analysts recently raised their earnings estimates for 2012 and 2013. But the biggest reason to invest in the company now is the chart. See below.
Technical Analysis
“TRMB is in a long-term uptrend, which is appropriate for a growth company of this caliber that isn’t particularly widely known. But it hit resistance at 52 back in April of 2011 and then hit resistance at 55 in April 2012, and all year it failed to get above that level, even while business at the company was humming (creating more value). Then, in the last week of November, it broke through that resistance, and it nearly hit 60 last week before pulling back normally. This pullback is your cue to get on board, somewhere between 55 (resistance becomes support) and 59. Use a stop at 53 as protection in case trends turn against you. Suggested Buy Range: 55-59. Cabot’s buy range is valid for two weeks.”
- Michael Cintolo, Cabot Top Ten Trader, December 17, 2012