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Here's Why You Should Add the GATX Stock to Your Portfolio
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GATX Corporation (GATX - Free Report) is benefiting from a gradual improvement in the North American railcar leasing market. Management expects the recovery to continue through 2022. Market lease rates are expected to be higher than average expiring rates for railcars renewing during the year. This, coupled with higher asset disposition gains, is expected to boost profits at GATX’s Rail North America segment in 2022.
GATX expects the Rail International segment’s profits in 2022 to be boosted by strong demand for new and existing railcars in Europe and India. Owing to strong demand for tank containers, the company expects higher Trifleet earnings in the year.
On a further positive note, GATX’s buyout of the world’s fourth-largest tank container lessor company, Trifleet Leasing Holding, in December 2020 has strengthened its railcar leasing operations. The purchase of the Dutch company, worth approximately €175 million, has also widened its customer base across the globe.
GATX is committed to consistently rewarding shareholders as its operations continue to grow. In January 2022, the company raised its quarterly dividend by 4% to 52 cents per share. 2022 marks the company’s 104th consecutive year of dividend payment.
Due to the above-mentioned tailwinds, shares of GATX have surged 38.9% in the past six months, outperforming the industry’s 9% growth.
Image Source: Zacks Investment Research
The positivity surrounding the stock is evident from the Zacks Consensus Estimate for 2022 earnings being revised upward by 5.6% in the past 60 days.
In view of the above-mentioned positives, we believe the time is rife for investors to add the GATX stock to their portfolios, as is suggested by its Zacks Rank #2 (Buy).
Other Key Picks
Some other stocks within the broader Transportation sector that investors can consider are as follows:
USA Truck sports a Zacks Rank #1 (Strong Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters (in line in one), the average surprise being 64.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of USA Truck have rallied more than 51% in the past six months.
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 31.4%.
Shares of ArcBest have surged more than 21% in the past six months.
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Here's Why You Should Add the GATX Stock to Your Portfolio
GATX Corporation (GATX - Free Report) is benefiting from a gradual improvement in the North American railcar leasing market. Management expects the recovery to continue through 2022. Market lease rates are expected to be higher than average expiring rates for railcars renewing during the year. This, coupled with higher asset disposition gains, is expected to boost profits at GATX’s Rail North America segment in 2022.
GATX expects the Rail International segment’s profits in 2022 to be boosted by strong demand for new and existing railcars in Europe and India. Owing to strong demand for tank containers, the company expects higher Trifleet earnings in the year.
On a further positive note, GATX’s buyout of the world’s fourth-largest tank container lessor company, Trifleet Leasing Holding, in December 2020 has strengthened its railcar leasing operations. The purchase of the Dutch company, worth approximately €175 million, has also widened its customer base across the globe.
GATX is committed to consistently rewarding shareholders as its operations continue to grow. In January 2022, the company raised its quarterly dividend by 4% to 52 cents per share. 2022 marks the company’s 104th consecutive year of dividend payment.
Due to the above-mentioned tailwinds, shares of GATX have surged 38.9% in the past six months, outperforming the industry’s 9% growth.
Image Source: Zacks Investment Research
The positivity surrounding the stock is evident from the Zacks Consensus Estimate for 2022 earnings being revised upward by 5.6% in the past 60 days.
In view of the above-mentioned positives, we believe the time is rife for investors to add the GATX stock to their portfolios, as is suggested by its Zacks Rank #2 (Buy).
Other Key Picks
Some other stocks within the broader Transportation sector that investors can consider are as follows:
USA Truck sports a Zacks Rank #1 (Strong Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters (in line in one), the average surprise being 64.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of USA Truck have rallied more than 51% in the past six months.
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 31.4%.
Shares of ArcBest have surged more than 21% in the past six months.