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The transports have momentum to start 2012. Trinity Industries, Inc. (TRN - Snapshot Report) is expected to grow earnings by the double digits as the backlog grew on its railcar and barge businesses. This Zacks #1 Rank (strong buy) is a double threat in both growth and value as it has a P/B ratio of just 1.3.

Trinity Industries operates in multiple industries in the transportation, energy, industrial and construction sectors. The company is one of the leading makers of railcars in North America and also provides railcar leasing services.

The Dallas-based company also manufactures inland barges and is the largest U.S. manufacturer of fiberglass hopper barge covers that are used primarily on grain barges.

The company's construction division makes highway guardrail and crash cushions and flexible post delineators as well as supplies concrete in Texas and neighboring states.

Its energy division makes structural wind tower and tank containers. The tank containers are used for both residential use as well as custom applications in the U.S. and Mexico.

Revenue Jumped 47.6% in the Third Quarter

On Oct 25, Trinity Industries reported its third quarter results. Revenue climbed to $796.8 million from $540 million in the year ago quarter.

The largest division, the Rail Group, saw revenue jump 145% to $320.9 million from $131 million in the third quarter of 2010.

It shipped 3,605 railcars and got orders for 4,250 railcars during the quarter. As of Sep 30, 2011, the Rail Group backlog grew to $2.4 billion from $2.2 billion at the end of the second quarter.

The Inland Barge Group grew revenue 45% to $143.2 million from $98.9 million a year ago.

Results for both periods were affected by the impact of two totally different flood events in May 2010 and May 2011 at facilities in Tennessee and Missouri. Both plants were not operating at planned production schedule for the entire quarter.

Trinity also extended its $425 million 5-year revolving credit facility in the third quarter.

Big Earnings Growth Expected in 2011 and 2012

In October, the company was still bullish about the full year. It forecast earnings between $1.45 and $1.50 per share.

The analysts are at the high end of that range, at $1.50 per share. That would be earnings growth of 94.8% as the company made just 77 cents last year.

2012 is also looking good.

The 2012 Zacks Consensus Estimate has risen 2 cents to $2.37 per share in the last month.

This is still strong earnings growth of 57.8%.

Trinity is scheduled to report its fourth quarter results on Feb 15 so we'll find out then if these bullish projections will hold.

Has All the Value Components

Shares sold off hard in the summer market sell-off when everyone was worried about the global economy.

The company has a forward P/E of 12.9 which is under the 15x level I use for value stocks.

A P/B ratio under 3.0 also usually indicates value and Trinity's P/B of 1.3 is well under that level.

It also has an attractive price-to-sales ratio of 0.9. A P/S ratio under 1.0 can mean a company is undervalued.

Trinity also rewards shareholders with a dividend currently yielding 1.2%.

For investors looking for value, Trinity fits the bill. As an added bonus, investors will also get double digit earnings growth.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at traceyryniec.

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