NEW YORK (TheStreet) -- Shares of American Railcar Industries, Inc. (ARII) are up 4.46% to $70.71 after it was reported that the U.S. government wants to phase out thousands of railroad tank cars that carry crude oil and ethanol within two years, as part of proposed rules to upgrade safety for trains carrying flammable fuels, the Wall Street Journal reports
Tens of thousands of these older DOT-111 tank cars will have to be replaced or retrofitted under the proposed rules, announced today, the Journal noted.
TheStreet Ratings team rates AMERICAN RAILCAR INDS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN RAILCAR INDS INC (ARII) 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: