ARB defies the market pullback and now getting ready to break higher

ARB Corporation (ARB) designs, manufactures and distributes 4WD accessories in Australia and into export markets and is a world leader in the development of 4WD products. The Company has manufacturing plants in Victoria and Thailand, as well as sales, warehousing and fitting facilities in all Australian state capitals. At least double-digit sales growth is expected in FY16 and the weaker $A increases the competitiveness of ARB's products in overseas markets. The company is also still benefiting from the structural shift towards SUV's. The stock is trading on a 1-year forward P/E rating of 21.5x, which is at the upper end of its recent 1-year forward P/E. We view the fundamentals of ARB as being very positive, with the premium rating well deserved. ARB has been in an uptrend for a number of years now but is close to breaking out of a symmetrical triangle which implies further upside towards $16.