Send me real-time posts from this site at my email

Trinity (TRN) Gains on Investor-Friendly Moves Amid Coronavirus

We recently issued an updated report on Trinity Industries, Inc. TRN.

We are impressed with Trinity’s efforts to reward its investors. In December, the company announced an 11% hike in its quarterly dividend to 21 cents per share (annually: 84 cents). The move is especially commendable, given the challenges the company is facing due to disruptions caused by coronavirus. Additionally, it returned $193 million to shareholders through dividends and share repurchases in the first nine months of 2020.

At the end of the third quarter, Trinity did not have any current debt, while its cash and equivalents stood at $121 million. Moreover, its current ratio, a measure of liquidity, stood at 2.34 at the end of third-quarter 2020 that suggests 36.8% year-over-year increase.

Meanwhile, economic slowdown caused by the coronavirus pandemic is exerting pressure on Trinity’s railcar demand. While railcar demand has recovered from the “pandemic lows”, it is still “tepid” amid economic uncertainty, the company stated at an Investor Day held in November.

Dismal performance of Trinity’s Rail Products Group is also concerning. The segment’s below-par performance is due to lower deliveries in the Rail Products Group and fewer railcars sold from the lease fleet.

Zacks Rank & Stocks to Consider

Trinity currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. KNX, Landstar System, Inc. LSTR and Herc Holdings Inc. HRI. Landstar carries a Zacks Rank #2 (Buy), while Knight-Swift and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
Trinity Industries, Inc. (TRN): Free Stock Analysis Report
Landstar System, Inc. (LSTR): Free Stock Analysis Report
Herc Holdings Inc. (HRI): Free Stock Analysis Report
To read this article on click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue