Datalink Corp. ( DTLK - Snapshot Report ) has pumped out some impressive gains in 2011, more than doubling in price after hitting a new multi-year in mid August. With a Q2 earnings surprise of 157% and bullish growth projection, this Zacks #1 rank stock is a solid pick for momentum.

Company Description

Datalink Corp designs, installs and supports data center solutions for medium and large-sized companies. The company was founded in 1958 and has a market cap of $162 million.

Although Datalink has been strong for most of 2011, shares got an extra boost on July 20 after the company reported strong Q2 results that came in well ahead of expectations.

Second-Quarter Results

Revenue for the period was up 26% from last year to $90 million. Earnings also looked great, coming in at 18 cents, 157% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 56% over the last four quarters.

The good quarter was driven by a sharp increase in high-dollar sales, with 36 customers purchasing over $1 million in products or services in the first six months of the year, up from 23 in the same period last year.

Financial Profile

Datalink has used its earnings momentum to strengthen its financial profile, with cash and short-term investments up $21 million from last year to $33 million against no debt.

Estimates

We saw some bullish movement in estimates off the good quarter, with the current year adding 16 cents to 56 cents while the next-year estimate gained 16 cents to 61 cents, a 10% growth projection.

Valaution

But in spite of the gains, the valuation picture still looks good, with a forward of 16X in line with its peer average.

12-Month Chart

On the chart, shares jumped into a new multi-year high on the good quarter before recently pulling back a bit with the market. Look for support from the long-term trend on any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.