10 Best Industrial Stocks Poised to Break Out in 2012

As the broader market rally continues to bring individual stocks near their highs of earlier last summer, the list of potential breakout candidates grows. The energy and technology sectors both have been fertile ground in which to find stocks on the verge of breaking out to new high ground, and now the industrial sector is setting up as a source of opportunity — providing, of course, that the broader market can hold up.
One way to play this is simply to use the Select Sector Industrial SPDR (NYSE:XLI) ETF, which closed Wednesday 5.9% short of its 52-week high of $38.98. But for those who prefer the higher-beta potential of individual stocks, here are a number of names to consider:

10 Best Industrial Stocks Poised to Break Out in 2012 - FedEx

NYSE:FDX
Wednesday’s close: $94.15
Breakout level: $98.66
10 Best Industrial Stocks Poised to Break Out in 2012 - Percent move needed for breakout: 4.8%

This is the fourth time in two years that FDX has entered the $95-$100 range. While a break above $98.66 still would leave the stock well short of its all-time high above $120, set in 2007, note that United Parcel Service (NYSE:UPS) already has moved out to a new high off of a similar formation as FDX. This bodes well for FedEx if the broader market holds up.

10 Best Industrial Stocks Poised to Break Out in 2012 - Canadian National Railway

NYSE:CNI
Wednesday’s close: $77.53
Breakout level: $81.26
Percent move needed for breakout: 4.8%
 Similar to FedEx, a number of CNI’s industry peers have broken out to new highs in recent months, among them Union Pacific (NYSE:UNP), Canadian Pacific Railway (NYSE:CP) and Kansas City Southern (NYSE:KSU).

10 Best Industrial Stocks Poised to Break Out in 2012 - Caterpillar

NYSE:CAT
Wednesday’s close: $112.53
Breakout level: $116.55
Percent move needed for breakout: 3.6%

 10 Best Industrial Stocks Poised to Break Out in 2012 - BorgWarner

NYSE:BWA
Wednesday’s close: $80.58
Breakout level: $82.28
Percent move needed for breakout: 2.1%

10 Best Industrial Stocks Poised to Break Out in 2012 -  Fiserv

Click to EnlargeNASDAQ:FISV
Wednesday’s close: $64.65
Breakout level: $66.06
Percent move needed for breakout: 2.2%

10 Best Industrial Stocks Poised to Break Out in 2012 - Praxair

NYSE:PX
Wednesday’s close: $107.66
Breakout level: $111.74
Percent move needed for breakout: 3.8%

10 Best Industrial Stocks Poised to Break Out in 2012 - Heico

NYSE:HEI
Wednesday’s close: $58.43
Breakout level: $61.97
Percent move needed for breakout: 6.1%

Eagle Materials

NYSE:EXP
Wednesday’s close: $33.27
Breakout level: $33.66
Percent move needed for breakout: 1.2%

Acuity Brands

NYSE:AYI
Wednesday’s close: $59.23
Breakout level: $61.45
Percent move needed for breakout: 3.7%
 10 Best Industrial Stocks Poised to Break Out in 2012 - Crane

NYSE:CR
Wednesday’s close: $49.06
Breakout level: $52.38
Percent move needed for breakout: 6.8%
 While these 10 charts look to be the most compelling, four others also have the potential for a breakout to new highs: Honeywell International (NYSE:HON), which is 5.6% away from breaking out; Ball Corp. (NYSE:BLL), 2.3%; Wabtec (NYSE:WAB), 8.2%; and Carlisle Cos. (NYSE:CSL), 8.1%.