[The Street] Breakout Stocks - Planes, Trains and Automobiles

"Planes, Trains and Automobiles" is more than just one of our favorite '80s films. Today, we offer you a way to profit from this theme given better-than-expected results from Breakout Stocks holdings that operate in each of these areas.

First up is BE Aerospace(BEAV), a leading manufacturer of cabin interiors for commercial aircraft and smaller planes, as well as a top distributor of aerospace fasteners and consumables. The company recently posted better-than-expected third-quarter results, raised its guidance for 2011 and issued initial guidance for 2012 that offered a bullish outlook on continued demand. During the conference call, management stated that it expects orders and backlog to continue their healthy growth.

The company has a solid balance sheet and continues to see margin expansion. Management addressed economic concerns and said that demand for the company's products remains strong based on solid traffic growth, increase airline capacity expansion, and near record-high load factors.

Finally, the company is benefit! ting fro m the early stages of a new wide-body delivery cycle, in which management projects six to nine times greater dollar content per plane -- it has multiple classes of seating and sees the need for more of its food and beverage equipment and lighting and oxygen systems. We remain convinced that the industry is in the midst of a powerful aerospace cycle and that the company is uniquely positioned for backlog growth, margin expansion and market share gains in the commercial aerospace group.

Next is Kansas City Southern(KSU). The company operates rail-freight transportation services in the U.S., Mexico and Panama. We are convinced that the company is capable of lowering its costs while capitalizing on emerging growth opportunities, including a revitalized Mexican rail business. In addition, its improving balance sheet may even be able to support a dividend beginning in 2012.

Management has commented that Mexico is "the new China," and Kansas City Southern is the sole rail operator out of the growing Port of Lazaro Cardenas. According to management, labor rates between China and Mexico have been converging, with recent labor rates in China only 15% below those in Mexico.

Shipping costs are significantly higher out of China, nudging many manufacturers toward the trend of "near sourcing" and resulting in a shift of production to Mexico. While its Lazaro business still accounts for a small part of the company's revenue, we are pleased to see new engines of growth to power this rail company forward.

Last up is Gentex(GNTX), the market-share and technological leader in the automotive niche of automatic dimming, rearview and side-view mirrors. We expect the stock to benefit from revitalized auto sales, which should continue to pick up in the back half of 2011. The company also recently posted better-than-expected third-quarter results.

We are looking toward a final ruling on legislation, expected by year-end, that would require all light vehicles in the U.S. to be equipped with rearview cameras by September 2014. Gentex's rear camera displays (RCDs) could be sold into 80% of the automotive marketplace, and we expect Gentex to have a dominant market share. A positive legislative outcome could have a dramatic effect on the company's revenues and could propel the stock higher.

We believe that Gentex is poised to benefit from both a cyclical recovery in the automotive marketplace and secular growth trends -- and that's why we're bullish on the shares.

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