Trinity Industries Breaks Out

Trinity Industries (TRN) shares are surging today in very heavy trade. The multi-industry company, with its strong link to the railroad sector, is one of the top percentage gainers on the NYSE. Last night's second-quarter report, which included an improved profit outlook for 2012, sparked a powerful gap-higher open that pushed shares to fresh July highs. TRN has backed off a bit from its early gains but is still up more than 17% and appears to be gaining traction above its June highs.

Trinity Industries (TRN) Source: TradeStation View Chart » View in New Window »

Today's breakout-type action has significant upside potential. The stock is leaving behind a very solid 10-week base that has been under construction since mid-May. Layers of underlying support are in place from the $24.00 to $26.00 area. With the stock now more than 20% above the July 12 lows, the day Stifel Nicolaus initiated a Buy rating, a bit of back-and-fill action is likely in the near term. A light volume drift back down to the $25.00 area would work off a bit of the earning's inspired ramp....50 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.