Feast Your Eyes on This Fresh Name

The market got a little frothier Thursday and extended stocks got even more extended. I don't like the fact that either is happening -- but I'm not fighting the trend, either, and that trend is still upward. The broad-market gains weren't huge Thursday, but chip stocks and transports joined the party, which was encouraging. For instance, Market Vectors Semiconductor ETF (SMH) rallied 1.7% to $35.29, and its weekly chart shows a nice technical setup. After a breakout during the week of Jan. 20, the fund is firming up at its 10-week moving average and could be on the verge of breakout from a bigger base that started in May. SMH -- Monthly Source: StockCharts.com View Chart » The performance of the transports was also impressive Thursday. CSX (CSX) provided the spark after the railroad forecast first-quarter earnings. Previously, rails had been under pressure over concerns about a slowdown in coal consumption, but on Thursday -- after heavy-volume selling in February -- the Dow Jones Transportation Average Index Fund (IYT) surged 3.3% to $95.60 in huge volume. IYT holds three railroad stocks in its top-10 holdings: Union Pacific (NFC), Norfolk Southern (NSC) and Kansas City Southern (KSU). IYT's heavy-volume gain Thursday improved its technical health dramatically -- so much so that a technical breakout above $96.13 is now in play. IYT -- Weekly Source: StockCharts.com View Chart » In terms of individual stocks, the market dished up another nice breakout from a lesser-known, yet innovative name: Fleetcor Technologies (FLT). The company sells fuel-card and payment products to businesses, commercial fleets and oil companies. Two days ago, Fleetcor priced an offering of 6 million shares at $36.50, and the stock finished near its session high Wednesday after early weakness. Then, early Thursday, Fleetcor said that The Pantry (PTRY) -- a convenience-store operator in the Midwest -- renewed its commercial fleet card contract with the company. Fleetcor shares proceeded to break out of a long base on the news, rising 4.3% to $38.59. Volume swelled to 847,000 shares, well above the stock's average daily volume of 272,000. Fleetcor Technologies (FLT) -- Weekly Source: StockCharts.com View Chart » Every now and then, a new name pops up that warrants a close look, and that's the case here. I like what I see in Fleetcor. The company operates in a niche industry but, as I always say, niche industries can present great growth opportunities. Last month, Fleetcor reported fourth-quarter profit of $0.56 a share, up 4% from a year earlier. Earnings growth has been decelerating in recent quarters, but I'm encouraged by the acceleration in sales growth from the third quarter, with a 32% rise to $140.2 million. Mutual fund ownership has been increasing in the stock, and recent quarters and annual return on equity is solid at 25%. Overall, Fleetcor's fundamental and technical picture looks compelling here. Finally, in terms of overall market health, I'm becoming more and more convinced that the spark for the widely expected market pullback will ultimately be increased selling pressure in Apple (AAPL). Since the stock's breakout above $427 in January, the stock's has been nothing less than sensational. Upside volume has been impressive as well. However, I'm concerned about four straight gaps up in price on Mar. 9, Mar. 12, Mar. 13 and Mar. 14. When a stock starts gapping up in price after having already made a big move, the action reeks of excessive euphoria and that's often seen before a pullback. Picking an Apple top has been a fool's game lately, but the stock's price action lately tells me that increased selling pressure may not be far off. Apple will consolidate gains at some point. Keep in mind that, when a stock builds a new base, the process usually takes several weeks -- not just a few days.

Feast Your Eyes on This Fresh Name

Every now and then an intriguing new name surfaces, and that's the case with the newly broken-out Fleetcor.

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