Barnes Group (NYSE: B) is an international aerospace and industrial components manufacturing and distribution company. The firm operates through three divisions. Barnes Aerospace is a highly specialized manufacturer of components and assemblies used in commercial, business and military jets and industrial gas turbines. Barnes Industrial is the largest manufacturer of precision springs in North America and one of the largest makers of nitrogen gas springs in the world. Barnes Distribution is a leading provider of maintenance, repair, operating and production supplies, such as fasteners, electrical components, abrasives, adhesives and tools. Customers include General Electric (NYSE: GE), Honeywell International (NYSE: HON) and United Technologies (NYSE: UTX).

The company surprised the Street last week, when it reported Q1 EPS of 60 cents and revenues of $388.6 million. Analysts had been looking for 53 cents and $381.2 million. The CEO attributed success to the firm's global reach. Management also guided FY08 EPS to $2.30-$2.39 ($2.24 consensus).

The stock popped on the news and subsequently moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with four "strong buys", one "buy" and two "holds". Analysts see a 17% average annual growth rate, through the next five years. The B P/E ratio (15.42), Price to Sales ratio (1.06), Price to Book ratio (2.18), Price to Cash Flow ratio (9.79) and EPS Growth rate (20.00%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 87% of the outstanding shares. The stock is one of the used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $20.37 and $36.89. A stop-loss of $25.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.