Trade-Ideas: Greenbrier Companies (GBX) Is Today's "Dead Cat Bounce" Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Greenbrier Companies as such a stock due to the following factors:
- GBX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.5 million.
- GBX has traded 91,056 shares today.
- GBX is up 3.2% today.
- GBX was down 9.2% yesterday.
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More details on GBX:
The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America and Europe. The stock currently has a dividend yield of 2.8%. GBX has a PE ratio of 4. Currently there are 3 analysts that rate Greenbrier Companies a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Greenbrier Companies has been 537,600 shares per day over the past 30 days. Greenbrier Companies has a market cap of $830.7 million and is part of the services sector and transportation industry. The stock has a beta of 1.74 and a short float of 35% with 7.87 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Greenbrier Companies as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels.
- Net operating cash flow has significantly increased by 362.24% to $212.81 million when compared to the same quarter last year. In addition, GREENBRIER COMPANIES INC has also vastly surpassed the industry average cash flow growth rate of -10.93%.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income has decreased by 10.9% when compared to the same quarter one year ago, dropping from $50.35 million to $44.87 million.
- You can view the full Greenbrier Companies Ratings Report.
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