Trinity Industries has broken out of a flat base with a buy point of 32 ahead of second-quarter results on Thursday. And so the leader of the transportation equipment manufacturing group is today's selection for IBD 50 Stocks To Watch.
Shares are in a buy zone above the early-stage base, according to IBD MarketSurge chart analysis tools. The relative strength line has risen sharply, indicating the stock's superior performance vs. the S&P 500. Year to date, the stock has risen 25% while the S&P 500 is 15% higher.
First-quarter earnings grew a whopping 371% while revenue rose 26%. Shares soared 13% from the 50-day moving average after results on May 1.
Trinity Industries provides railcar transportation products and services throughout North America. That includes leasing and management services, manufacturing and maintenance.
Where Trinity Industries Is Headed
Analysts polled by FactSet see sales of $738 million or a 2% growth with earnings of 34 cents per share which would be 46% higher than the prior year. Sales from the company's rail group are expected to come in at $547 million while revenue from leasing railcars and accessories is expected at $290 million.
Rising profit estimates for 2025 and strong technical ratings are points in the stock's favor.
Trinity stock holds a Composite Rating of 97 while its EPS Rating and Relative Strength Rating, both at 90, are also signs of strength.
Mutual funds own 62% of outstanding shares of Trinity Industries. More recent institutional buying has earned the stock an Accumulation/Distribution Rating of B+. Also, among exchange traded funds, the iShares Core S&P Small Cap ETF holds shares of Trinity Industries.
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