Pursuant to the correction that has taken place in recent weeks with respect to the shares in Greenbrier Companies Inc, further downside risk now appears limited by close and important technical support levels at 44.65 USD.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company is in a robust financial situation considering its net cash and margin position.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The company shows low valuation levels, with an enterprise value at 0.49 times its sales.
● Its low valuation, with P/E ratio at 9.68 and 11.61 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
The Greenbrier Companies, Inc. is a designer, manufacturer, and marketer of railroad freight car equipment in North America, Europe, and South America. It is a manufacturer and marketer of marine barges. It offers railcar management, regulatory compliance services and leasing services to railcar owners or other users of railcars. The Company operates through three segments: Manufacturing, Maintenance Services, and Leasing & Management Services. The Manufacturing segment produces automotive railcar products. The Maintenance Services segment performs wheel and axle servicing, railcar maintenance and produces a variety of parts for the rail industry in North America. The Leasing & Management Services segment operate railcar leasing business in North America and offers management services, such as software and services that include railcar maintenance management, fleet logistics and railcar accounting services. The Leasing & Management Services segment owns approximately 13,400 railcars.