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Here's Why Investors Should Bet On Trinity (TRN) Stock Now
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Trinity Industries’ (TRN - Free Report) strong segmental performance of the Railcar Leasing and Management Services Group and Rail Products segments is boosting the top line. The shareholder-friendly approach is praiseworthy. As a result, Trinity shares have performed impressively in the stock market. If you haven't taken advantage of its share price appreciation yet, now is the time to do so.
Let’s take a look at the factors that make the Trinity stock a robust investment pick at the moment.
Strong Price Performance: A glimpse at the company’s price trend reveals that its shares have risen 15.7% in the past year, surpassing the sector’s growth of 0.3%.
Image Source: Zacks Investment Research
Solid Rank: TRN currently sports a Zacks Rank #1 (Strong Buy).
Northward Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 12.3% over the past 90 days for the current year. For the next year, the consensus mark for earnings per share has moved 38.71% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Driving Factors: Trinity's robust performance in both its segments, Railcar Leasing and Management Services Group and Rail Products Group, led to a 26% year-over-year increase in revenues for the first quarter of 2024. TRN anticipates the operating margin for the Rail Products segment between 6% and 8% for the current year. The metric is expected between 7% and 9% in 2025, and 9% and 11% in 2026.
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 range guided previously.
Trinity expects net fleet investments in the range of $750 million-$1 billion over the 2024-2026 period. The company expects the sum of cash flow from operations and gains from lease portfolio sales in the $1.2 billion-$1.4 billion band during the same period.
Additionally, TRN anticipates an adjusted return on equity (ROE) in the 12-15% range over the three years. These performance indicators reveal Trinity's strategic focus on growth, operational efficiency and shareholder value, making it an attractive prospect for investors.
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 49 (out of 249). Such a good rank places the company in the top 20% 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 for investors’ consideration in the Zacks Transportation sector include SkyWest (SKYW - Free Report) and Kirby Corporation (KEX - Free Report) .
SkyWest currently carries a Zacks Rank #2 (Buy) and has an expected earnings growth rate of 787% for the current year.
SKYW has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 128%. Shares of SkyWest have jumped 108.6% in the past year.
The company has an encouraging track record concerning the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 62.9%. Shares of Kirby have climbed 61.4% in the past year.
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Here's Why Investors Should Bet On Trinity (TRN) Stock Now
Trinity Industries’ (TRN - Free Report) strong segmental performance of the Railcar Leasing and Management Services Group and Rail Products segments is boosting the top line. The shareholder-friendly approach is praiseworthy. As a result, Trinity shares have performed impressively in the stock market. If you haven't taken advantage of its share price appreciation yet, now is the time to do so.
Let’s take a look at the factors that make the Trinity stock a robust investment pick at the moment.
Strong Price Performance: A glimpse at the company’s price trend reveals that its shares have risen 15.7% in the past year, surpassing the sector’s growth of 0.3%.
Image Source: Zacks Investment Research
Solid Rank: TRN currently sports a Zacks Rank #1 (Strong Buy).
Northward Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 12.3% over the past 90 days for the current year. For the next year, the consensus mark for earnings per share has moved 38.71% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Driving Factors: Trinity's robust performance in both its segments, Railcar Leasing and Management Services Group and Rail Products Group, led to a 26% year-over-year increase in revenues for the first quarter of 2024. TRN anticipates the operating margin for the Rail Products segment between 6% and 8% for the current year. The metric is expected between 7% and 9% in 2025, and 9% and 11% in 2026.
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 range guided previously.
Trinity expects net fleet investments in the range of $750 million-$1 billion over the 2024-2026 period. The company expects the sum of cash flow from operations and gains from lease portfolio sales in the $1.2 billion-$1.4 billion band during the same period.
Additionally, TRN anticipates an adjusted return on equity (ROE) in the 12-15% range over the three years. These performance indicators reveal Trinity's strategic focus on growth, operational efficiency and shareholder value, making it an attractive prospect for investors.
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 49 (out of 249). Such a good rank places the company in the top 20% 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 for investors’ consideration in the Zacks Transportation sector include SkyWest (SKYW - Free Report) and Kirby Corporation (KEX - Free Report) .
SkyWest currently carries a Zacks Rank #2 (Buy) and has an expected earnings growth rate of 787% for the current year.
SKYW has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 128%. Shares of SkyWest have jumped 108.6% in the past year.
KEX holds a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Kirby has an expected earnings growth rate of 42.5% for the current year.
The company has an encouraging track record concerning the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 62.9%. Shares of Kirby have climbed 61.4% in the past year.