Greenbrier Companies (GBX) Flagged As Strong On High Volume

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 Greenbrier Companies ( GBX) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Greenbrier Companies as such a stock due to the following factors:

  • GBX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.4 million.
  • GBX has traded 129,448 shares today.
  • GBX is trading at 2.58 times the normal volume for the stock at this time of day.
  • GBX is trading at a new high 4.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on GBX:

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America and Europe. The stock currently has a dividend yield of 1.1%. GBX has a PE ratio of 16.1. Currently there are 6 analysts that rate Greenbrier Companies a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Greenbrier Companies has been 970,000 shares per day over the past 30 days. Greenbrier Companies has a market cap of $1.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.15 and a short float of 28% with 6.44 days to cover. Shares are up 44.5% year-to-date as of the close of trading on Monday.

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 Greenbrier Companies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 27.6%. 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 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Machinery industry and the overall market, GREENBRIER COMPANIES INC's return on equity exceeds that of both the industry average and the S&P 500.
  • GREENBRIER COMPANIES INC 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, GREENBRIER COMPANIES INC turned its bottom line around by earning $3.45 versus -$0.66 in the prior year. This year, the market expects an improvement in earnings ($4.40 versus $3.45).
  • 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 128.6% when compared to the same quarter one year prior, rising from $20.72 million to $47.36 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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