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Greenbrier (GBX) Stock Attains 52-Week High on Strong Q3

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Shares of The Greenbrier Companies, Inc. GBX scaled a 52-week high of $54.46 on Jul 2, before retracing a bit to close the session at $54.10. The day’s closing price reflected an improvement of 2.6% over Jun 29’s close.

The Catalyst

On Jun 29, the maker of railroad freight car equipment reported better-than-expected earnings per share in the third quarter of fiscal 2018 (ended May 31, 2018). The company’s earnings of $1.30 (excluding 29 cents from non-recurring items) easily surpassed the Zacks Consensus Estimate of $1.14 per share. The bottom-line figure also expanded 26.2% on a year-over-year.

Additionally, the company reported a year-over-year increase of 41.1% to $641.4 million in terms of revenues. The top line was aided by a 60.9% increase in manufacturing revenues to $510.1 million. Greenbrier also received 6,000 new railcar orders during the reported quarter, which is an added positive.

The company expects fiscal 2018 earnings to be $5 per share, above the Zacks Consensus Estimate of $4.18. Meanwhile, revenues are projected to be $2.5 billion, a tad below the consensus mark of $2.51 billion.

The earnings outperformance and upbeat bottom-line outlook pleased investors resulting in the Greenbrier stock’s rally post the earnings release. However, gains were not limited to Greenbrier, shares of its fellow-railcar sector participant — GATX Corporation GATX — were also positively impacted by the report.

Impressive Price Performance

We note that this transportation company’s impressive performance was not limited to Jul 2. Notably, the company has outperformed its industry in a year’s time. The stock has gained 17.7% compared with the industry's 7% rise in the period.


Zacks Rank & Other Stocks to Consider

Greenbrier carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Transportation sector are Atlas Air Worldwide Holdings AAWW and Expeditors International of Washington, Inc. EXPD, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Atlas Air Worldwide and Expeditors have rallied more than 31% and 28%, respectively, in a year.

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