Trinity Industries, Inc. (TRN - Free Report) is currently mired in multiple headwinds, which we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revisions: The Zacks Consensus Estimate for earnings for the current quarter and current year has been revised 13.5% and 13% downward, over the past 60 days. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
An Underperformer: Trinity stock has declined 25.5% in a year’s time against the 0.6% rise of its industry’s.
Weak Zacks Rank: Trinity currently carries a Zacks Rank #5 (Strong Sell). Our research shows that stocks with a Zacks Rank #4 (Sell) or #5 does not offer attractive investment opportunities.
Bearish Industry Rank: The industry to which TRN belongs, currently has a Zacks Industry Rank of 151 (of 250 plus groups). Such an unfavorable rank places TRN in the bottom 40% of the 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 group. Therefore, reckoning the industry’s performance becomes imperative.
Other Headwinds: Trinity exited the December quarter with the current ratio (a measure of liquidity) of 0.89, lower than the September quarter's reading of 1.80. Decreasing current ratio is alarming. Moreover, a current ratio of less than 1 implies that the company doesn't have enough liquid assets to cover its short-term liabilities.
Trinity’s operations are being hurt by supply chain-disruptions and labor shortages. Notably, labor and supply-chain challenges faced by Trinity's Rail Products Group impacted deliveries and margins of the segment in fourth-quarter 2022.
Stocks to Consider
Some better-ranked stocks in the Zacks Transportation sector are Copa Holdings (CPA - Free Report) and GATX Corporation (GATX).
Copa Holdings currently sports a Zacks Rank #1 (Strong Buy). CPA's focus on its cargo segment is very encouraging. In fourth-quarter 2022, cargo and mail revenues jumped 69% to $27.09 million, owing to higher cargo volumes and yields. You can see the complete list of today’s Zacks #1 Rank stocks here.
For first-quarter and full-year 2023, CPA’s earnings are expected to register 302.9% and 40.6% growth, respectively, on a year-over-year basis.
GATX Corporation carries a Zacks Rank #2 (Buy) at present. The gradual improvement in the North American railcar leasing market is a huge positive for GATX. Management expects recovery in the North American railcar leasing market to continue in 2023.
For full-year 2023, GATX’s earnings are expected to register 10.5% growth on a year-over-year basis.
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Trinity Industries, Inc. (TRN - Free Report) is currently mired in multiple headwinds, which we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revisions: The Zacks Consensus Estimate for earnings for the current quarter and current year has been revised 13.5% and 13% downward, over the past 60 days. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
An Underperformer: Trinity stock has declined 25.5% in a year’s time against the 0.6% rise of its industry’s.
Weak Zacks Rank: Trinity currently carries a Zacks Rank #5 (Strong Sell). Our research shows that stocks with a Zacks Rank #4 (Sell) or #5 does not offer attractive investment opportunities.
Bearish Industry Rank: The industry to which TRN belongs, currently has a Zacks Industry Rank of 151 (of 250 plus groups). Such an unfavorable rank places TRN in the bottom 40% of the 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 group. Therefore, reckoning the industry’s performance becomes imperative.
Other Headwinds: Trinity exited the December quarter with the current ratio (a measure of liquidity) of 0.89, lower than the September quarter's reading of 1.80. Decreasing current ratio is alarming. Moreover, a current ratio of less than 1 implies that the company doesn't have enough liquid assets to cover its short-term liabilities.
Trinity’s operations are being hurt by supply chain-disruptions and labor shortages. Notably, labor and supply-chain challenges faced by Trinity's Rail Products Group impacted deliveries and margins of the segment in fourth-quarter 2022.
Stocks to Consider
Some better-ranked stocks in the Zacks Transportation sector are Copa Holdings (CPA - Free Report) and GATX Corporation (GATX).
Copa Holdings currently sports a Zacks Rank #1 (Strong Buy). CPA's focus on its cargo segment is very encouraging. In fourth-quarter 2022, cargo and mail revenues jumped 69% to $27.09 million, owing to higher cargo volumes and yields. You can see the complete list of today’s Zacks #1 Rank stocks here.
For first-quarter and full-year 2023, CPA’s earnings are expected to register 302.9% and 40.6% growth, respectively, on a year-over-year basis.
GATX Corporation carries a Zacks Rank #2 (Buy) at present. The gradual improvement in the North American railcar leasing market is a huge positive for GATX. Management expects recovery in the North American railcar leasing market to continue in 2023.
For full-year 2023, GATX’s earnings are expected to register 10.5% growth on a year-over-year basis.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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