New Lifetime High Reached By American Railcar Industries (ARII)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified American Railcar Industries ( ARII) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified American Railcar Industries as such a stock due to the following factors:

  • ARII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.1 million.
  • ARII has traded 3,432 shares today.
  • ARII is trading at a new lifetime high.

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More details on ARII:

American Railcar Industries, Inc. designs, manufactures, and sells hopper and tank railcars in North America. The stock currently has a dividend yield of 2.1%. ARII has a PE ratio of 11.7. Currently there are no analysts that rate American Railcar Industries a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for American Railcar Industries has been 263,300 shares per day over the past 30 days. American Railcar has a market cap of $1.0 billion and is part of the services sector and transportation industry. The stock has a beta of 2.50 and a short float of 25.3% with 9.19 days to cover. Shares are up 7% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates American Railcar Industries as a buy. 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, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

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 18.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Machinery industry and the overall market, AMERICAN RAILCAR INDS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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