Trade-Ideas LLC identified

Greenbrier Companies

(

GBX

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $21.5 million.
  • GBX has traded 766,866 shares today.
  • GBX traded in a range 203.6% of the normal price range with a price range of $3.81.
  • GBX traded above its daily resistance level (quality: 9 days, meaning that the stock is crossing a resistance level set by the last 9 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on GBX:

TheStreet Recommends

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 1.7%. GBX has a PE ratio of 7. Currently there are 4 analysts that rate Greenbrier Companies a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Greenbrier Companies has been 574,700 shares per day over the past 30 days. Greenbrier Companies has a market cap of $1.0 billion and is part of the services sector and transportation industry. The stock has a beta of 1.54 and a short float of 29.5% with 13.03 days to cover. Shares are down 33.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Greenbrier Companies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 18.3%. Since the same quarter one year prior, revenues rose by 20.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Machinery industry and the overall market, GREENBRIER COMPANIES INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • GREENBRIER COMPANIES INC has improved earnings per share by 29.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GREENBRIER COMPANIES INC turned its bottom line around by earning $3.45 versus -$0.66 in the prior year. This year, the market expects an improvement in earnings ($5.87 versus $3.45).

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