Today American Railcar Industries (ARII) Hits New Lifetime High

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 $17.5 million.
  • ARII has traded 1,511 shares today.
  • ARII is trading at a new lifetime high.

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More details on ARII:

American Railcar Industries, Inc. designs and manufactures hopper and tank railcars in North America. It operates through three segments: Manufacturing, Railcar Leasing, and Railcar Services. The stock currently has a dividend yield of 2%. ARII has a PE ratio of 17.3. Currently there are no analysts that rate American Railcar Industries a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for American Railcar Industries has been 211,700 shares per day over the past 30 days. American Railcar has a market cap of $1.7 billion and is part of the services sector and transportation industry. The stock has a beta of 2.69 and a short float of 21.5% with 7.68 days to cover. Shares are up 74% year-to-date as of the close of trading on Friday.

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, good cash flow from operations and solid stock price performance. 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 3.5%. Since the same quarter one year prior, revenues rose by 49.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ARII has a quick ratio of 2.35, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
  • Powered by its strong earnings growth of 36.03% and other important driving factors, this stock has surged by 120.64% 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, ARII should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AMERICAN RAILCAR INDS INC has improved earnings per share by 36.0% 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, AMERICAN RAILCAR INDS INC increased its bottom line by earning $4.07 versus $2.99 in the prior year. This year, the market expects an improvement in earnings ($4.59 versus $4.07).

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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