Here's Why Greenbrier Companies (GBX) Fell More Than Broader Market
Greenbrier Companies (GBX) closed at $44.18 in the latest trading session, marking a -1.3% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.56%.
Prior to today's trading, shares of the maker of railroad freight car equipment had gained 18.69% over the past month. This has outpaced the Transportation sector's gain of 9.53% and the S&P 500's gain of 5.24% in that time.
Market participants will be closely following the financial results of Greenbrier Companies in its upcoming release. The company plans to announce its earnings on January 5, 2024. In that report, analysts expect Greenbrier Companies to post earnings of $0.71 per share. This would mark year-over-year growth of 1320%. Simultaneously, our latest consensus estimate expects the revenue to be $886.5 million, showing a 15.66% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.50 per share and revenue of $3.71 billion, indicating changes of +17.85% and -5.95%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Greenbrier Companies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Greenbrier Companies possesses a Zacks Rank of #2 (Buy).
Looking at its valuation, Greenbrier Companies is holding a Forward P/E ratio of 12.8. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 12.8.
Also, we should mention that GBX has a PEG ratio of 1.83. 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. By the end of yesterday's trading, the Transportation - Equipment and Leasing industry had an average PEG ratio of 1.18.
The Transportation - Equipment and Leasing industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
