Small caps have been performing amazingly over the past year and this stock is no different. Its fundamentals and technicals are in sync and should spell more gains over the next several months. The stock is a at a fresh 52-week high and looking for more. Meet DXP Enterprises (DXPE).
According to Yahoo! Finance, the company distributes maintenance, repair, and operating (MRO) products, equipment, and services to industrial customers in the United States. The company operates in two segments, MRO and Electrical Contractor.
More Upside?
One look at the chart should tell the story of how the stock is doing. It has staged two monster breakouts since November and is digesting its recent gains in the $24 area. I like the fact that volume has been picking up lately on the up days, which shows that buyers are still active in the stock. The month-long base that is forming should provide nice support should another breakout occur.
The 50-day moving average is nicely following the price at a 45 degree angle and will provide downside support. The longer the price stays in this range, the closer this average and the price will converge, which will be good for the stock.
Fundamentally, the company has exceeded earnings in each of the past four quarters by an average margin of 14.8%. It is trading at 14.6x 2011 estimates, which isn’t expensive at all. Earnings estimates have been stable and are slightly up over the past two months. I am guessing that the next chart breakout will be to the upside again, and that $30 isn’t too far off in the future.
Getting Technical: Small Cap in Strong Uptrend is an article from: 
