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Here's Why Investors Should Buy Trinity (TRN) Stock Now
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Trinity Industries’ (TRN - Free Report) top line is being boosted by the strong performances of its Railcar Leasing and Management Services Group and Rail Products segments. The company’s efforts to reward its shareholders through dividends and buybacks are also commendable. Owing to the tailwinds, shares of TRN have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make Trinity stock a strong investment pick at the moment.
Solid Rank & VGM Score: TRN currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 2.4% in the past 30 days, surpassing the industry’s 1.8% growth.
Image Source: Zacks Investment Research
Northward Estimate Revisions:The Zacks Consensus Estimate for earnings per share has been revised upward by 43.5% over the past 90 days for the current quarter. For the current year, the consensus mark for earnings per share has moved 8.7% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Driving Factors:TRN reported a robust 26% year-over-year increase in top line for the first quarter of 2024, driven by the strong performance of both its segments, Railcar Leasing and Management Services Group and Rail Products Group. The company is optimistic about its performance for 2024. Management has increased the earnings per share guidance for 2024 to the range of $1.35-$1.55 (which excludes items outside of the company’s core business operations) from the $1.30-$1.50 guided previously.
TRN consistently rewards its shareholders through dividends and share repurchases. In 2023, 2022 and 2021, the company paid out dividends worth$86 million, $76.9 million and $88.5 million, respectively. Trinity rewarded its shareholders with $23 million during the first quarter of 2024. The company repurchased shares worth $51.8 million in 2022 and $833.4 million in 2021. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Bullish Industry Rank: The industry to which TRN belongs currently has a Zacks Industry Rank of 55 (out of 249). Such a good rank places the company in the top 22% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
WAB has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 11.5%. Shares of Wabtec have surged 70.6% in the past year.
KEX currently sports a Zacks Rank #1 and has an expected earnings growth rate of 42.2% for the current year.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 10.3%. Shares of KEX have surged 61.7% in the past year.
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Here's Why Investors Should Buy Trinity (TRN) Stock Now
Trinity Industries’ (TRN - Free Report) top line is being boosted by the strong performances of its Railcar Leasing and Management Services Group and Rail Products segments. The company’s efforts to reward its shareholders through dividends and buybacks are also commendable. Owing to the tailwinds, shares of TRN have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make Trinity stock a strong investment pick at the moment.
Solid Rank & VGM Score: TRN currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 2.4% in the past 30 days, surpassing the industry’s 1.8% growth.
Image Source: Zacks Investment Research
Northward Estimate Revisions:The Zacks Consensus Estimate for earnings per share has been revised upward by 43.5% over the past 90 days for the current quarter. For the current year, the consensus mark for earnings per share has moved 8.7% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Driving Factors:TRN reported a robust 26% year-over-year increase in top line for the first quarter of 2024, driven by the strong performance of both its segments, Railcar Leasing and Management Services Group and Rail Products Group. The company is optimistic about its performance for 2024. Management has increased the earnings per share guidance for 2024 to the range of $1.35-$1.55 (which excludes items outside of the company’s core business operations) from the $1.30-$1.50 guided previously.
TRN consistently rewards its shareholders through dividends and share repurchases. In 2023, 2022 and 2021, the company paid out dividends worth$86 million, $76.9 million and $88.5 million, respectively. Trinity rewarded its shareholders with $23 million during the first quarter of 2024. The company repurchased shares worth $51.8 million in 2022 and $833.4 million in 2021. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Bullish Industry Rank: The industry to which TRN belongs currently has a Zacks Industry Rank of 55 (out of 249). Such a good rank places the company in the top 22% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Transportation sector are Wabtec Corporation (WAB - Free Report) and Kirby Corporation (KEX - Free Report) .
WAB currently sports a Zacks Rank #1 and has an expected earnings growth rate of 22.6% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.
WAB has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 11.5%. Shares of Wabtec have surged 70.6% in the past year.
KEX currently sports a Zacks Rank #1 and has an expected earnings growth rate of 42.2% for the current year.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 10.3%. Shares of KEX have surged 61.7% in the past year.