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Here's Why Investors Should Invest in Trinity (TRN) Stock Now
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Trinity Industries, Inc. (TRN - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
Rising Stock Price: A glimpse at the company’s price trend reveals that its shares have surged 39.1% in the past year compared with 61.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Trinity 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. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Two estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 12.3% in the past 60 days.
Positive Earnings Surprise History: Trinity has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering an earnings surprise of 105%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at 64 cents per share, which reflects year-over-year growth of 73%. Moreover, earnings are expected to register 107.8% growth in 2022.
Driving Factors: Trinity's cash position is impressive. As of Jun 30, 2021, Trinity did not have any current debt, while its cash and cash equivalents were $91 million. Moreover, Trinity's improving current ratio (a measure of liquidity) is encouraging. The company’s current ratio at the end of second-quarter 2021 was 1.96, higher than the industry average. A higher current ratio is more desirable as it indicates that the company is more capable of paying its short-term debt obligations.
The company’s cost-reduction initiatives are partly offsetting the coronavirus-related adversities on its operations. Thanks to headcount reductions and other cost-saving efforts, Trinity achieved more than $35 million of annualized administrative cost reductions in 2020.
Other Stocks to Consider
Some other top-ranked stocks worth considering in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Knight-Swift and Landstar carry a Zacks Rank #2, while Herc Holdings sports a Zacks Rank #1.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 49.2%, respectively.
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Here's Why Investors Should Invest in Trinity (TRN) Stock Now
Trinity Industries, Inc. (TRN - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
Rising Stock Price: A glimpse at the company’s price trend reveals that its shares have surged 39.1% in the past year compared with 61.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Trinity 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Two estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 12.3% in the past 60 days.
Positive Earnings Surprise History: Trinity has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering an earnings surprise of 105%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at 64 cents per share, which reflects year-over-year growth of 73%. Moreover, earnings are expected to register 107.8% growth in 2022.
Driving Factors: Trinity's cash position is impressive. As of Jun 30, 2021, Trinity did not have any current debt, while its cash and cash equivalents were $91 million. Moreover, Trinity's improving current ratio (a measure of liquidity) is encouraging. The company’s current ratio at the end of second-quarter 2021 was 1.96, higher than the industry average. A higher current ratio is more desirable as it indicates that the company is more capable of paying its short-term debt obligations.
The company’s cost-reduction initiatives are partly offsetting the coronavirus-related adversities on its operations. Thanks to headcount reductions and other cost-saving efforts, Trinity achieved more than $35 million of annualized administrative cost reductions in 2020.
Other Stocks to Consider
Some other top-ranked stocks worth considering in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Knight-Swift and Landstar carry a Zacks Rank #2, while Herc Holdings sports a Zacks Rank #1.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 49.2%, respectively.