NEW YORK (TheStreet) -- Shares of Trinity Industries Inc. (TRN) are up 2.73% to $82.42 after the company, which builds, sells and leases rail cars, was featured in Barron's as a beneficiary of the U.S. shale boom, calling it the "King of the Road."
The publication said: "While shares of the Dallas-based company have rallied 110% over the past year to about $80 recently, compared to a 20% gain for the S&P's 500 index, there's still plenty of room for the stock to chug ahead."
TheStreet Ratings team rates TRINITY INDUSTRIES as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRINITY INDUSTRIES (TRN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and solid stock price performance. 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 analysis by TheStreet Ratings Team goes as follows:
- TRN's very impressive revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues leaped by 56.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 213.18% and other important driving factors, this stock has surged by 112.79% 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 $4.67 versus $3.17 in the prior year. This year, the market expects an improvement in earnings ($7.45 versus $4.67).
- 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 186.9% when compared to the same quarter one year prior, rising from $78.90 million to $226.40 million.
- 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, TRINITY INDUSTRIES's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: TRN Ratings Report