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Here's Why You Should Pick GATX for Your Portfolio Right Now

Zacks Equity Research

GATX Corporation GATX boasts an impressive divided payment history. The company has been paying dividends consistently since 1919. Notably, this January, it raised its quarterly dividend by 4.5% to 46 cents per share. The company is also active on the buyback front. Alongside the dividend hike this January, GATX’s board cleared a new share repurchase authorization of $300 million, replacing the previous one.

The company’s fleet expansion initiatives are also encouraging. In this regard, it is worth noting that it inked a deal with ECN Capital Corporation last November to buy up to 3,100 railcars from the latter. GATX will shell out up to $229 million for the deal, which primarily includes freight cars with an average age of seven years.

The company also flaunts an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average being of 16%.

GATX Corporation Price and Consensus

 

GATX Corporation Price and Consensus

GATX Corporation price-consensus-chart | GATX Corporation Quote


Surrounded by this optimism, the Zacks Consensus Estimate for the company’s second-quarter earnings has been revised a couple of cents upward in the last 60 days. The same for current-year earnings has moved 3 cents north.

Further, adding to this positivity, the company has an attractive Value Score of B. This when combined with the company’s Zacks Rank #2 (Buy), offers a significant upside potential.

Thus, we believe investors should add this stock to their portfolios now.

Other Stocks to Consider

Some other stocks worth considering in the broader Transportation sector are Fly Leasing Limited FLY, Trinity Industries, Inc. TRN and SkyWest, Inc. SKYW. While Fly Leasing sports a Zacks Rank #1 (Strong Buy), Trinity and SkyWest carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of SkyWest have surged more than 34% so far this year. Meanwhile, bothTrinity and Fly Leasing flaunt an encouraging earnings history. While Fly Leasing outpaced the Zacks Consensus Estimate in each of the trailing four quarters, Trinity topped estimates in three of the preceding four quarters.

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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
 
GATX Corporation (GATX) : Free Stock Analysis Report
 
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
 
Fly Leasing Limited (FLY) : Free Stock Analysis Report
 
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