Greenbrier Companies (GBX) Stock Sinks As Market Gains: What You Should Know
Greenbrier Companies (GBX) closed at $40.59 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the maker of railroad freight car equipment had lost 3.02% over the past month, outpacing the Transportation sector's loss of 3.22% and lagging the S&P 500's loss of 1.38% in that time.
Investors will be hoping for strength from Greenbrier Companies as it approaches its next earnings release. On that day, Greenbrier Companies is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 68.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, up 8.12% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Greenbrier Companies. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.05% higher within the past month. Greenbrier Companies is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Greenbrier Companies's current valuation metrics, including its Forward P/E ratio of 11.32. This represents a premium compared to its industry's average Forward P/E of 10.28.
It is also worth noting that GBX currently has a PEG ratio of 1.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Equipment and Leasing industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Transportation - Equipment and Leasing industry is part of the Transportation sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
