Trade-Ideas LLC identified

Greenbrier Companies

(

GBX

) as a weak on high relative volume 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 $26.9 million.
  • GBX has traded 105,366 shares today.
  • GBX is trading at 3.44 times the normal volume for the stock at this time of day.
  • GBX is trading at a new low 5.06% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 2.2%. GBX has a PE ratio of 6. 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 679,100 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 1.79 and a short float of 26.9% with 8.43 days to cover. Shares are down 33.1% 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 21.8%. Since the same quarter one year prior, revenues rose by 23.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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 41.3% 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 increased its bottom line by earning $5.93 versus $3.45 in the prior year. This year, the market expects an improvement in earnings ($6.00 versus $5.93).

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