Talking Numbers

This is the ultimate growth stock

The ultimate growth stock
VIDEO2:3402:34
The ultimate growth stock

Think momentum stocks, and most traders think Twitter, Facebook or some high biotech stock. But quietly, one little-known transport name has seen a massive rally, Trinity Industries.

Shares of the railcar provider are up nearly 50 percent since January, and have more than doubled over the course of the past 12 months. The move has come amid a record-breaking year for the Dow Jones transportation average.

So, is Trinity the little engine that could? Or is the stock overbought?

"Trinity continues to look very, very good technically," said Mark Newton of Greywolf Execution Partners. "The stock is up over 30 percent since mid-April alone, over 135 percent since last June. So it's really showing very little sign of any technical deterioration."

Now, Trinity has seen a slowing of momentum over the last five trading session, losing more than 6 percent of its value, but that's not enough to chase Newton out of this stock.

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"If anything, patient investors are being given the opportunity to buy dips," he said of the recent price action. "Until we see signs of technical trend damage, you certainly still want to be in this name and use any chance of selling off to buy dips."

And according to Andrew Burkly of Oppenheimer, the fundamental story of Trinity is just as strong as the charts.

"From a macroeconomic perspective, this is exactly the type of name you want to be in," said Burkly, who finds very little reason to avoid the company.

"The best part of this is that it's very reasonably valued. It trades about 11 times on a P/E multiple, which is very attractive for a cyclical growth name."

Check out the video above for the full discussion on Wednesday's episode of CNBC's "Street Signs."

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