(NTG) - improving fundamentals and a strong chart - With no effective overhead resistance, NTG will continue to move higher

Full Analysis On May 2, Natco reported an excellent quarter with earnings of 41 cents per share, up 193% from last year. It also marked a 32% positive earnings surprise over consensus estimates. All the other vital signs were solid as well, with Sales up 25% to $118 million and Income up 214% to $7.86 million. Technical Analysis When you have a stock with such excellent financial performance, what does its chart look like? Pretty much like a rocket taking off and that's what NTG's stock chart looks like right now. NTG set a new 52-week high on Friday on very heavy volume and continued the climb on Monday. With no effective overhead resistance, NTG will continue to move higher until it finds a point where the supply and demand for its stock is in balance. So far in 2006, NTG has yet to find that level. Buying a stock with a chart like NTG is a difficult thing emotionally. We're trained to 'buy low and sell high' or to look for bargains. Momentum traders are comforted in times like these by reminding themselves that 'buying low' can often only be recognized after the moment. A basic tenant of Momentum investing is that the quickest way to superior returns is to buy good stocks with improving fundamentals at the same time that the market is recognizing that improvement. Such is the case with NTG. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Background Natco Group Inc. is a leading provider of wellhead equipment, systems and services used in the production of oil and gas. The production equipment and systems are primarily used at or near the wellhead to separate oil and gas within a hydrocarbon stream and to remove contaminants. Separation and decontamination at the wellhead are necessary to meet the specifications of transporters and end users. The products and services are used in onshore and offshore fields in most major oil and gas producing regions in the world. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home