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Greenbrier Companies (GBX) Outpaces Stock Market Gains: What You Should Know

·3 min read

Greenbrier Companies (GBX) closed the most recent trading day at $43.40, moving +1.83% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.52%.

Coming into today, shares of the maker of railroad freight car equipment had gained 9.76% in the past month. In that same time, the Transportation sector lost 1.49%, while the S&P 500 lost 3.75%.

Investors will be hoping for strength from Greenbrier Companies as it approaches its next earnings release. In that report, analysts expect Greenbrier Companies to post earnings of $0.10 per share. This would mark year-over-year growth of 135.71%. Our most recent consensus estimate is calling for quarterly revenue of $578.8 million, up 95.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $2.58 billion. These totals would mark changes of +107.27% and +47.43%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Greenbrier Companies. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Greenbrier Companies is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Greenbrier Companies has a Forward P/E ratio of 18.67 right now. For comparison, its industry has an average Forward P/E of 11.06, which means Greenbrier Companies is trading at a premium to the group.

Meanwhile, GBX's PEG ratio is currently 2.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Equipment and Leasing stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.

The Transportation - Equipment and Leasing industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GBX in the coming trading sessions, be sure to utilize Zacks.com.


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