Trinity Industries Inc. (TRN): Today's Featured Transportation Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Trinity Industries ( TRN) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 1%. By the end of trading, Trinity Industries fell 51 cents (-1.1%) to $44.31 on light volume. Throughout the day, 597,404 shares of Trinity Industries exchanged hands as compared to its average daily volume of 867,900 shares. The stock ranged in price between $43.97-$44.87 after having opened the day at $44.75 as compared to the previous trading day's close of $44.82. Other companies within the Transportation industry that declined today were: FreeSeas ( FREE), down 12.7%, Excel Maritime Carriers ( EXM), down 11.8%, Sino-Global Shipping America ( SINO), down 6.9%, and Frontline ( FRO), down 5.5%.
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Trinity Industries, Inc. provides products and services to the industrial, energy, transportation, and construction sectors primarily in the United States, Canada, Mexico, the United Kingdom, Singapore, and Sweden. Trinity Industries has a market cap of $3.51 billion and is part of the services sector. The company has a P/E ratio of 14, below the S&P 500 P/E ratio of 17.7. Shares are up 25.1% year to date as of the close of trading on Monday. Currently there are four analysts that rate Trinity Industries a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Trinity Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Gol Intelligent Airlines ( GOL), up 4%, Providence & Worcester Railroad Company ( PWX), up 3.1%, Rand Logistics ( RLOG), up 3%, and Republic Airways Holdings ( RJET), up 3%, were all gainers within the transportation industry with US Airways Group ( LCC) being today's featured transportation industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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