This stock pick was selected by The Momentum Letter Trading System.  For more information on The Momentum Letter, please click here.

Spartan Motors (Nasdaq: SPAR)

Market Cap: $297M

Industry: Specialty Vehicles and Parts

Shares of Spartan Motors are up 63% over the past 12 months, including a 42% rally since early March.  Shares trade at only 0.5x sales and under 2x book value.  EPS grew 150% this year and 60% per year over the past 5 years.  With little debt, a 1.1% dividend, and a buy or better from analysts, this is a relative safe momentum play to buy now and hold for the next 3 to 6 months.

The company has a history of debuting new products and 2017 has been no exception to that.  Company management has a strong p.r. perspective.  Its record of beating eps estimates is strong as well.  Both insider and institutional ownership of shares has grown in recent weeks.

Per the chart below, price is coming into an area of past resistance around the $9.75 area.  The alltime high, marked just after its 2009 IPO, is also in this area, just over $10, and with the market’s help, we should see these areas give way.