New Lifetime High Reached: GATX (GMT)

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

  • GMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.1 million.
  • GMT has traded 942 shares today.
  • GMT is trading at a new lifetime high.

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More details on GMT:

GATX Corporation leases, operates, manages, and remarkets assets in the rail and marine markets in North America and internationally. The company operates in four segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management. The stock currently has a dividend yield of 2%. GMT has a PE ratio of 18.1. Currently there are 2 analysts that rate GATX a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for GATX has been 289,900 shares per day over the past 30 days. GATX has a market cap of $3.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.14 and a short float of 6% with 6.18 days to cover. Shares are up 23.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates GATX 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 expanding profit margins. 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:
  • GMT's revenue growth has slightly outpaced the industry average of 7.1%. Since the same quarter one year prior, revenues slightly increased by 7.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 27.10%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the stock's future course, although almost any stock can fall in a broad market decline, GMT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GATX CORP 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, GATX CORP increased its bottom line by earning $3.60 versus $2.88 in the prior year. This year, the market expects an improvement in earnings ($3.96 versus $3.60).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 79.5% when compared to the same quarter one year prior, rising from $29.70 million to $53.30 million.
  • The gross profit margin for GATX CORP is rather high; currently it is at 51.68%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.94% is above that of the industry average.

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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