Trade-Ideas: Trinity Industries (TRN) Is Today's New Lifetime High Stock

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

  • TRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.8 million.
  • TRN has traded 35,915 shares today.
  • TRN is trading at a new lifetime high.

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More details on TRN:

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. The stock currently has a dividend yield of 1%. TRN has a PE ratio of 14.6. Currently there are 4 analysts that rate Trinity Industries a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Trinity Industries has been 1.3 million shares per day over the past 30 days. Trinity has a market cap of $4.7 billion and is part of the services sector and transportation industry. The stock has a beta of 1.80 and a short float of 11.6% with 9.13 days to cover. Shares are up 10.6% year-to-date as of the close of trading on Tuesday.

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 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.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 17.4%. Since the same quarter one year prior, revenues rose by 22.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 59.49% and other important driving factors, this stock has surged by 43.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TRN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • TRINITY INDUSTRIES reported significant earnings per share improvement 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, TRINITY INDUSTRIES increased its bottom line by earning $3.17 versus $1.77 in the prior year. This year, the market expects an improvement in earnings ($4.67 versus $3.17).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 57.6% when compared to the same quarter one year prior, rising from $63.20 million to $99.60 million.

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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