One of Zacks.comÂ’s several trading services, the Breakout Trader, recently received a boost in the form of a 19% return on a stock that was in the portfolio for a holding period that was a couple days short of just one month. The stock was American Science & Engineering ( ASEI), and its share price is still rising.

Impressed by American Science & EngineeringÂ’s results, I set out to find similar plays, making sure the fundamentals were strong. After browsing several companies, it became evident that my screening strategy should be narrowed down to companies that, like ASEI, provide big ticket items serving industrial markets.

With the use of Research Wizard, I found AZZ incorporated (AZZ) and Teledyne Technologies, Inc. (TDY). I also discovered that all three companies are makers of industrial electronic equipment or components, bringing to mind the only memorable part of the lyrics to the Electric Slide song…”itÂ’s electric.”

These companies, however, are more than just “electric.” A closer look at the fundamentals and technical momentum behind these three stocks reveals that they are also electrifying.

American Science & Engineering, the impetus for this investment idea, boasts a history of contributing innovative technology to the fields of astrophysics, defense, education, medicine and security since 1958. Today, the company provides X-ray inspection systems and continues to innovate, create and develop new products by investing in new ideas through research and development.

American Science & EngineeringÂ’s X-ray inspection systems are used by governments and corporations around the world to combat terrorism, drug and weapons smuggling, illegal immigration, and trade fraud.

Technically, the Zacks #1 Rank (“strong buy”) company looks great. During the past 3 months, it’s share price spiked by 29% as the broader market fell.

The fundamental picture is a little mixed. Earnings misses over the past 4 consecutive quarters look indicate that there is certainly room for improvement. However, rising Wall Street estimates for ASEIÂ’s fiscal second quarter, third quarter and full year signal prosperity ahead. AnalystsÂ’ earnings expectations for the year ending March 2009 were up 1.3% over the past 30 trading days.

For the next 3 – 5 years, the company’s earnings per share are projected to grow by 17.5%.

If the companyÂ’s share price advanced on results that came in below the consensus estimate, should ASEI meet or surpass future forecasts, shares could sky rocket.

AZZ incorporated is a specialty electrical equipment manufacturer serving the global markets of power generation, transmission and distribution and industrial, as well as a leading provider of hot dip galvanizing services to the steel fabrication market nationwide.

Of the three stocks, AZZ has seen the biggest return over the past 3 months as shares jumped 44%.

This company is also a Zacks #1 Rank (“strong buy”). On the fundamental front, the company has done well. It topped Wall Street estimates 3 times out of the past 4 straight quarters, matching the other time. On average, AZZ was ahead of analyst forecasts by 27% during the 4 quarters.

Projections are also on the rise for this pick. For the full year, Wall Street is calling for earnings of $3.00 per share, versus the $2.37 two months ago.

The company’s earnings per share are expected to grow by 12% over the next 3 – 5 years.

Teledyne Technologies provides sophisticated electronic components, instruments & communications products, including defense electronics, data acquisition & communications equipment for airlines and business aircraft, monitoring and control instruments for industrial and environmental applications and components, and subsystems for wireless and satellite communications.

This company, a Zacks #2 Rank (“buy”) has seen a share price rise of 13.5% over the past 3 months.

TDY eclipsed the consensus estimate by an average of 12% over the past 4 consecutive quarters. As the case with the aforementioned, Wall Street sees higher earnings ahead. Analysts hiked full-year expectations by 6% from last monthÂ’s level.

Earnings per share are expected to grow by 14% over the next 3 – 5 years for TDY.

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Zacks Investment Research

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