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Triton (TRTN) Gains on Dividend Hike & Rising Trade Volumes

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We have recently updated a report on Triton International Limited (TRTN - Free Report) .

The long-term expected earnings per share (three to five years) growth rate for Triton is pegged at 10%. Triton has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of growth.

The stock has gained 33% in the past year compared with a 50.1% rally of the industry.

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We are impressed by Triton International’s commitment to reward shareholders through dividend payouts and share buybacks despite the coronavirus-related adversities. Since the launch of its existing share buyback program in August 2018, the company repurchased more than 14.5 million shares. It also has a track record of consistent dividend payouts. In October 2021, Triton International’s board announced a 14% hike in its quarterly dividend to 65 cents per share (annually: $2.60). The company increased its share repurchase authorization to $200 million.

Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the fourth as well as in the first, second and third quarter of 2021. Triton anticipates adjusted earnings per share for fourth-quarter 2021 to increase slightly from the September quarter’s tally on improved trade volumes.

Despite recent improvements, COVID-led woes continue to dent operations on a year-over-year basis. Disposal volumes declined in the first three quarters of 2021 due to limited container redeliveries and low sale inventory.

Zacks Rank & Other Stocks to Consider

Triton currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Investors interested in the broader Zacks Transportation sector can also consider stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .

The long-term expected earnings per share (three to five years) growth rate for Knight-Swift is pegged at 15%. KNX is benefitting from an improvement in the adjusted operating ratio. Notably, the adjusted operating ratio improved to 82.8% in the first nine months of 2021 compared with 86.6% reported in the first nine months of 2020. In third-quarter 2021, the metric improved to 81.3% from 83.9% in the year-ago quarter.  

The uptick in adjusted operating ratios is driven by an increase in revenues in the Trucking, Logistics and Intermodal segments. Lower the value of the metric, the better. The stock has surged 42.9% in the past year. Knight-Swift sports a Zacks Rank #1.

The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.

LSTR’s top and the bottom line increased substantially in each quarter from the third quarter of 2020, owing to robust revenues generated from the primary segment — truck transportation. The stock has returned 34.4% in the past year. Landstar carries a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW is benefitting from higher pricing and volumes across most of its service lines. Total revenues increased 42.4% year over year in the first nine months of 2021, with higher revenues across all segments.

CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 5.1% in the past year. C.H. Robinson carries a Zacks Rank #2.