This Stock Is Up 950% in a Year and Still Hitting New Highs

• Power Solutions International (PSIX) shows strong technical momentum, hitting a new high in morning trading on June 25.
• The stock has a 100% technical “Buy” signal via Barchart.
• Shares are up nearly 950% in the past year.
• Fundamentals are solid and analyst and investor sentiment is moderately bullish.

Today’s Featured Stock:

Valued at $1.48 billion, Power Solutions International (PSIX) is engaged in producing and distributing power solutions for original equipment manufacturers of off-highway industrial equipment in the United States. The company sells engines for stationary generators, oil and gas equipment, forklifts, aerial work platforms, industrial sweepers, arbor equipment, agricultural and turf equipment. It also offers low-emission standard fuel and hybrid power solutions.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. PSIX checks those boxes. Since the Trend Seeker signaled a buy on May 12, the stock has gained 86.64%.

PSIX Price vs. Daily Moving Averages:

Barchart Technical Indicators for Power Solutions:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Power Solutions shares hit a new 52-week high on June 25, touching $67 in morning trading.

• Power Solutions has a 100% technical “Buy” signal.
• The stock recently traded at $67, above its 50-day moving average of $38.01.
• PSIX has a Weighted Alpha of +497.75.
• The stock has gained 946% over the past year.
• PSIX has its Trend Seeker “Buy” signal intact.
• Power Solutions is trading above its 20, 50 and 100-day moving averages.
• The stock has made 14 new highs and gained 67.9% in the last month.
• Relative Strength Index is at 86.01%.
• The technical support level is $62.15.

Follow the Fundamentals:

• $1.48 billion market cap.
• Trailing price-earnings ratio of 18.3x.
• Revenue is projected to grow 10.34% this year and another 8.36% next year.
• Earnings are estimated to increase 7.12% this year and an additional 6.31% next year.

Analyst and Investor Sentiment on Power Solutions:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only a Wall Street analyst, but also many of the popular investing advisory services, are moderately bullish on this stock.

• A single Wall Street analyst tracked by Barchart issued a “Strong Buy” opinion on the stock.
• Value Line rates the stock “Average.”
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• MorningStar thinks the stock is 12% undervalued.
• 14,850 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line:

Power Solutions currently has momentum and support from both the market and individual investors.

I caution that PSIX is volatile and speculative — use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.