Thursday’s TSX breakouts: There’s a bullish 'golden cross' indicator on this stock

Today, there are 16 stocks on the positive breakouts list, many of which are gold stocks with the price of gold climbing given the global market volatility, and we are up to 57 stocks on the negative breakouts list.

Highlighted today is Cargojet Inc (CJT-T), which appears on our positive breakouts list. A brief overview is provided below that may serve as a springboard for further research.

Mississauga-based Cargojet provides time-sensitive air cargo services across North America. In August 2015, the company announced it extended its contract with United Parcel Service Canada (UPS), securing a new 10-year contract. In April 2015, the company began providing all air cargo services to Canada Post and Purolator across Canada through a seven-year contract.

On Nov. 9, the company announced third-quarter financial results. Reported revenues were $75.3-million, up 59.5 per cent year-over-year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) before one-time costs came in at $13.8-million, well ahead of the Street's expectations of $10.95-million. The stock price jumped 7.8 per cent to $26.19 from $24.30 after reporting its financial results.

Dividend policy

The company pays shareholders a quarterly dividend of 14.91 cents per share, or 59.64 cents per annum, equating to an annualized yield of 2.2 per cent.

Analysts' recommendations

According to Bloomberg, there are three analysts covering this company, two of whom have buy recommendations and one analyst has a sector perform recommendation. Price targets vary widely with individual price targets of $25, $30, and $35. The average price target is $30, implying a potential price return of over 11 per cent.

The consensus sales forecast is $300-million in 2015, rising to $345-million in 2016. The consensus EBITDA estimate is $35-milion in 2015, more than doubling to $71-million in 2016.

Technical analysis

The stock chart look interesting with its recent "golden cross", a bullish indicator that occurs when the 50-day moving average crossed above the 200-day moving average. However, recent volumes have been low.

The stock has initial downside support just above $25, close to its 50-day moving average of $25.43, and its 200-day moving average of $25.21. There is upside resistance near $28, then around $29.

The small-cap stock is thinly traded, and as a result, can be volatile. The average daily trading volume over the past two months is just under 20,000 shares.

As always, I strongly encourage readers to consult a financial advisor, and to do their own proper due diligence before taking any investment action.

Below is a list of stocks in the S&P/TSX composite index and the S&P/TSX Small Cap index that are technically breaking out, reaching new 55-day highs or lows.