U.S. Markets open in 1 hr 43 mins

Trinity (TRN) to Invest in New Railcar Maintenance Facility

Zacks Equity Research

Trinity Industries, Inc.’s TRN wholly-owned subsidiary — TrinityRail Maintenance Services, Inc — has announced the development of a new railcar maintenance services facility in Shell Rock, IA. The chosen location will allow Trinity access to Class I railroad network as well as the upper Midwest.

The new facility, expected to begin operations by 2020-end, will offer services like repairs and maintenance, coatings, cleaning, inspections as well as testing. Besides enhancing customer experience, the railcar service facility will expand the company’s internal network and operational flexibility.

The expansion initiative marks the company’s progress toward its goal of internally servicing nearly half of its fleet, which comprises 123,000 owned and managed railcars. Trinity also aims to improve business returns through this endeavor. Benefits from the full-service facility is expected to be accretive to financial results by 2021-end.

Trinity has a planned capital expenditure of $60 million set for the construction of the facility. Nearly half of this investment is scheduled in the current year. The company’s capex projection for 2019 is exclusive of this investment.

Trinity Industries, Inc. Price

 

Trinity Industries, Inc. Price

Trinity Industries, Inc. price | Trinity Industries, Inc. Quote

 

Zacks Rank & Other Key Picks

Trinity carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Transportation sector are SkyWest, Inc. SKYW, GATX Corp. GATX and Fly Leasing Limited FLY. While SkyWest and Fly Leasing sport a Zacks Rank #1 (Strong Buy), GATX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of SkyWest and GATX have gained more than 32% and 7% respectively so far this year. Meanwhile, Fly Leasing has an impressive earnings surprise history, outperforming the Zacks Consensus Estimate in each of the trailing four quarters. The company registered an average of 41.3%.

Will you retire a millionaire?

One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”

Click to get it free >>


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
 
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
 
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
 
Fly Leasing Limited (FLY) : Free Stock Analysis Report
 
GATX Corporation (GATX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research