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Freightcar America (RAIL) Moves 10.7% Higher: Will This Strength Last?

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Freightcar America (RAIL - Free Report) shares rallied 10.7% in the last trading session to close at $10.79. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 37.7% gain over the past four weeks.

FreightCar America shares have performed exceedingly well this year, gaining almost 300% year to date.  This fast-growing company  has secured major orders of late and increased production capacity.  Driven by the buoyant scenario, RAIL expects current-year revenues between $560 million and $600 million (the mid-point of the range indicates 62% year-over-year

This rail car maker is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +142.9%. Revenues are expected to be $139.96 million, up 126.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Freightcar America, the consensus EPS estimate for the quarter has been revised 31.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on RAIL going forward to see if this recent jump can turn into more strength down the road.

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

Freightcar America is part of the Zacks Transportation - Equipment and Leasing industry. Ryder (R - Free Report) , another stock in the same industry, closed the last trading session 0.3% higher at $145.80. R has returned 0.1% in the past month.

For Ryder, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.44. This represents a change of -3.9% from what the company reported a year ago. Ryder currently has a Zacks Rank of #3 (Hold).


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