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Greenbrier Companies (GBX) Dips More Than Broader Markets: What You Should Know

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Greenbrier Companies (GBX - Free Report) closed at $50.37 in the latest trading session, marking a -1.7% move from the prior day. This change lagged the S&P 500's daily loss of 0.74%.

Coming into today, shares of the maker of railroad freight car equipment had gained 24.49% in the past month. In that same time, the Transportation sector lost 2.21%, while the S&P 500 lost 4.6%.

Greenbrier Companies will be looking to display strength as it nears its next earnings release. In that report, analysts expect Greenbrier Companies to post earnings of $0.10 per share. This would mark year-over-year growth of 135.71%. Our most recent consensus estimate is calling for quarterly revenue of $578.8 million, up 95.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $2.58 billion. These totals would mark changes of +107.27% and +47.43%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Greenbrier Companies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Greenbrier Companies is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Greenbrier Companies is holding a Forward P/E ratio of 22.45. Its industry sports an average Forward P/E of 11.78, so we one might conclude that Greenbrier Companies is trading at a premium comparatively.

Meanwhile, GBX's PEG ratio is currently 3.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GBX's industry had an average PEG ratio of 1.02 as of yesterday's close.

The Transportation - Equipment and Leasing industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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