Despite an earnings miss, the shares of this railroad car equipment manufacturer gained momentum, yet remain undervalued. TheStreet.com rates the company a buy, based on “robust revenue growth, reasonable debt, notable return on equity, attractive valuation levels and impressive record of earnings per share growth.”
Greenbrier Companies, Inc. (GBX)
from The Lancz Letter
There are several factors which make Greenbrier Companies, Inc. (GBX) an ideal new buy recommendation for investors seeking long term total return. First, the stock is trading at an historic low valuation as investors have over-reacted to the slowing rail car cycle. The fact that one of the industry leaders, Trinity Industries, is mired in litigation from problems with its guardrails only has intensified the pressure.
Greenbrier has an industry leading balance sheet and backing to come out of any extended slowdown in even better position. Long term investors should take advantage of recent weakness.
Aggressive Buy Range: $36-42
Safety Factor (1=low to 5=high): 3.5
Buy Limit: $47
Target Range: $55-65
Alan B. Lancz, The Lancz Letter, www.lanczglobal.com, 419-536-5200, July 27, 2015