Here's Why Investors Should Buy Trinity (TRN) Stock Now
Trinity Industries, Inc. TRN performed well in the past three-month period and has the potential to sustain the momentum. If you have not taken advantage of its share price appreciation yet, you should add the stock to your portfolio now.
Let us delve into the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have jumped 20.1% in the past three-month period compared with 18.2% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank: Trinity currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer impressive investment opportunities.
Northward Estimate Revisions: Two estimates for 2023 moved north in the past 60 days versus one southward revision, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2023 earnings has moved up 5.9% in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for 2023 earnings is pegged at $1.25, suggesting 33% rise from a year ago. Moreover, earnings are expected to register 54% growth in 2024.
Driving Factors: With the recovery in economy, an increase in demand for railcars is aiding Trinity. Higher volumes of external deliveries and improved pricing are driving revenues at the Rail Products Group. Segmental revenues improved 14.2% year over year in the third quarter owing to higher delivery volumes and a favorable mix of railcars sold.
We are impressed with Trinity’s efforts to reward its investors. In December 2022, TRN’s board of directors declared a dividend hike of almost 13%, thereby raising the quarterly cash dividend from 23 cents per share to 26 cents.
Additionally, its board of directors approved a new share repurchase program effective from Dec 9, 2022, with no expiration. The new authorization allows TRN to repurchase up to $250 million worth of shares of its common stock.
During 2022, Trinity rewarded its shareholders with dividends worth $76.9 million and repurchased shares worth $51.8 million. In the first six months of 2023, dividends paid to shareholders were $43.3 million.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may consider some other top-ranked stocks like Ryanair Holdings RYAAY and SkyWest SKYW, currently sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
RYAAY is benefiting from the buoyant air-traffic scenario post Covid. Traffic grew 11% to 105.4 million during the first half of fiscal 2024. On the back of robust traffic scenario, RYAAY’s profit after tax was €2.18 billion during the first half of fiscal 2024, up 59% year over year. Ryanair expects fiscal 2024 traffic to be 183.5 million.
SKYW's fleet modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for 2024 earnings has increased 3.5% in the past 60 days.
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
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
