Core Viewpoint - Investors in the Transportation - Equipment and Leasing sector should consider Greenbrier Companies (GBX) as a more favorable investment compared to Herc Holdings (HRI) based on various valuation metrics and earnings outlook [1] Valuation Metrics - GBX has a forward P/E ratio of 11.36, while HRI has a forward P/E of 13.17, indicating that GBX may be undervalued relative to HRI [5] - The PEG ratio for GBX is 0.97, suggesting better value when considering expected earnings growth, compared to HRI's PEG ratio of 1.03 [5] - GBX's P/B ratio stands at 1.33, significantly lower than HRI's P/B of 3.82, further indicating that GBX is more attractively priced [6] Earnings Outlook - GBX currently has a Zacks Rank of 1 (Strong Buy), reflecting an improving earnings estimate revision trend, while HRI has a Zacks Rank of 5 (Strong Sell), indicating a less favorable outlook [3][7] - The improving earnings outlook for GBX positions it as a superior value option in the current market [7]

Core Viewpoint - The article discusses the advantages of using the EV-to-EBITDA metric over the traditional P/E ratio for evaluating stock valuations and identifying potential investment opportunities. Group 1: Valuation Metrics - The P/E ratio is widely used for screening stocks and determining fair market value, but it has limitations [1] - EV-to-EBITDA is considered a more comprehensive valuation metric as it accounts for a company's total value, including debt, and provides a clearer picture of profitability by excluding non-cash expenses [2][4] - A lower EV-to-EBITDA ratio indicates a potentially undervalued stock and is particularly useful for assessing acquisition targets [5] Group 2: Limitations of P/E and EV-to-EBITDA - P/E cannot be applied to loss-making firms and is subject to accounting manipulation, while EV-to-EBITDA is less susceptible to such issues and can be used for companies with negative net earnings [6] - EV-to-EBITDA varies across industries, making it less effective for comparing companies in different sectors; it is recommended to use it alongside other ratios like P/B, P/E, and P/S for better analysis [7] Group 3: Screening Criteria for Bargain Stocks - Screening parameters include: - EV-to-EBITDA less than industry median for cheaper valuation [8] - P/E less than industry median to find discounted stocks [8] - P/B less than industry median indicating undervaluation [8] - P/S less than industry median for attractive pricing relative to sales [9] - Estimated one-year EPS growth greater than or equal to industry median [10] - Average 20-day volume greater than or equal to 50,000 for liquidity [10] - Current price greater than or equal to $5 to ensure minimum trading value [10] - Zacks Rank of 1 or 2 indicating strong buy potential [11] - Value Score of A or B for best upside potential [11] Group 4: Selected Stocks - SM Energy Company has a Zacks Rank of 1 and an expected earnings growth rate of 19.4% for 2025 [12] - Sonoco Products Company also holds a Zacks Rank of 1 with a projected earnings growth rate of 22.1% for 2025 [13] - El Pollo Loco has a Zacks Rank of 1 and an expected earnings growth rate of 14.5% for 2025 [14] - The Greenbrier Companies has a Zacks Rank of 1 and an expected earnings growth rate of 18.9% for fiscal 2025 [15] - Plains GP Holdings has a Zacks Rank of 2 with an impressive expected earnings growth rate of 100.2% for 2025 [16]

Group 1: Pitney Bowes Inc. (PBI) - The company has a Zacks Rank of 1, indicating strong performance potential [1] - The Zacks Consensus Estimate for its current year earnings has increased by 5.3% over the last 60 days [1] - Pitney Bowes has a PEG ratio of 0.50, significantly lower than the industry average of 3.21, suggesting strong growth potential relative to its valuation [1] - The company possesses a Growth Score of B, indicating favorable growth characteristics [1] Group 2: Pilgrim's Pride Corporation (PPC) - The company also holds a Zacks Rank of 1, reflecting strong growth prospects [2] - The Zacks Consensus Estimate for its current year earnings has risen by 4.3% over the last 60 days [2] - Pilgrim's Pride has a PEG ratio of 0.20, which is much lower than the industry average of 0.60, indicating a strong growth outlook [2] - The company has a Growth Score of A, highlighting its robust growth characteristics [2] Group 3: The Greenbrier Companies, Inc. (GBX) - The company carries a Zacks Rank of 1, suggesting strong investment potential [3] - The Zacks Consensus Estimate for its current year earnings has increased by 13.5% over the last 60 days, indicating positive earnings momentum [3] - The Greenbrier Companies has a PEG ratio of 1.02, compared to the industry average of 2.07, suggesting it is relatively undervalued [3] - The company possesses a Growth Score of A, reflecting strong growth attributes [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Greenbrier Companies (GBX) - Greenbrier Companies currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Performance Metrics - Over the past week, GBX shares increased by 1.29%, while the Zacks Transportation - Equipment and Leasing industry declined by 2.44% [6] - In the last quarter, GBX shares rose by 26.41%, and over the past year, they increased by 44.82%, compared to the S&P 500's performance of 0% and 23.73% respectively [7] - The average 20-day trading volume for GBX is 325,775 shares, indicating a bullish trend when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for GBX increased, while none decreased, raising the consensus estimate from $5.20 to $5.90 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions noted [10] Conclusion - Given the strong performance metrics and positive earnings outlook, GBX is positioned as a promising investment opportunity with a Momentum Score of A [12]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Z ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today January 13th:The Greenbrier Companies (GBX) : This company which is a leading supplier of transportation equipment and services to the railroad and related industries, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days.The Greenbrier Companies has a PEG ratio of 0.91 compared with 1.67 for the industry. T ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they ...

Financial Performance - Revenue increased from $808.8 million to $875.9 million, a growth of 8.3%[16] - Net earnings attributable to Greenbrier rose from $31.2 million to $55.3 million, an increase of 77.2%[16] - Revenue increased by $67.1 million (8.3%) compared to the same period last year, driven by higher railcar deliveries[98][104] - Margin percentage reached 19.8%, the highest in over seven years, representing a 4.8% improvement year-over-year[98] - Earnings from operations increased by 72.3% to $111.8 million, attributed to higher revenue and improved margin percentage[98] - Manufacturing segment revenue increased by $60.7 million (8.0%) to $820.4 million for the three months ended November 30, 2024, driven by a 7.7% increase in railcar deliveries to 5,600 units[108][109] - Earnings from operations in the Manufacturing segment rose by $51.2 million (78.9%) to $116.1 million, with operating margin improving to 14.2% from 8.5%[108] - Leasing & Fleet Management revenue increased by 13.0% to $55.5 million, driven by higher rents and railcar sales[115] - Leasing & Fleet Management earnings from operations increased by $0.4 million, driven by higher rents and improved lease rates[118] - Earnings from unconsolidated affiliates increased by $2.6 million to $4.1 million for the three months ended November 30, 2024, primarily due to higher earnings at Brazil operations[130] Cash and Liquidity - Cash and cash equivalents decreased from $351.8 million to $300.0 million, a decline of 14.7%[15] - The company has $300.0 million in cash and cash equivalents and $248.7 million in available borrowings as of November 30, 2024[145] - Net cash used in operating activities increased by $20.4 million to $65.1 million for the three months ended November 30, 2024, primarily due to a $63.3 million change in leased railcars for syndication[133][134] - The company expects existing funds, cash generated from operations, and proceeds from financing activities to be sufficient to fund expected debt repayments, working capital needs, planned capital expenditures, additional investments, and dividends over the next twelve months[155] Expenses and Costs - Selling and administrative expense increased by 10.1% to $62.0 million, primarily due to higher employee-related costs[120] - Selling and administrative expenses increased by $5.7 million, primarily due to higher employee-related costs[107] - Interest and foreign exchange expense increased by $0.2 million, driven by a $2.0 million rise in foreign exchange loss[123] - Income tax expense for the three months ended November 30, 2024, was $33.4 million, with an effective tax rate of 37.8%[125] - The effective tax rate may fluctuate due to changes in the mix of foreign and domestic pre-tax earnings, including the impact of the Mexican railcar manufacturing joint venture[127] Debt and Financing - Senior secured credit facilities aggregated to $1.3 billion as of November 30, 2024, including a $450.0 million non-recourse warehouse credit facility for GBX Leasing[146] - 81% of the company's outstanding debt had fixed rates and 19% had variable rates as of November 30, 2024, with a 10% increase in variable rates potentially adding $1.6 million in annual interest expense[172] - The company has converted $667.8 million of variable rate debt to fixed rate debt using interest rate swap agreements as of November 30, 2024[154] Share Repurchase Program - The share repurchase program was extended to January 31, 2027, with $100.0 million remaining for repurchase[28] - The company's share repurchase program was extended to January 31, 2027, with $100.0 million authorized for repurchases[144] - The share repurchase program had $45.1 million remaining for purchase as of November 30, 2024, and was extended to January 31, 2027 with a renewed amount of $100.0 million[179][180] Manufacturing and Leasing Operations - Manufacturing margin percentage increased by 5.6% due to operating efficiencies and favorable product mix[111] - Leasing & Fleet Management margin percentage decreased by 9.0% due to lower syndication activity and higher sales of lower-margin railcars[117] - Railcar backlog as of November 30, 2024, was 23,400 units with an estimated value of $3.0 billion, with deliveries extending into 2026[94] - The company purchased $3.1 million of railcar components from Axis, LLC, a joint venture in which it holds a 41.9% interest[90] - Capital expenditures for 2025 are expected to be approximately $360 million for Leasing & Fleet Management and $120 million for Manufacturing, totaling $480 million[137] Foreign Exchange and International Operations - The notional amounts of foreign exchange contracts for the purchase of Polish Zlotys and the sale of Euros, and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $214.0 million as of November 30, 2024[170] - Net assets of foreign subsidiaries aggregated to $162.5 million as of November 30, 2024, and a 10% strengthening of the U.S. Dollar would result in a decrease in equity of $16.3 million, or 1.2% of total equity[171] Contract Liabilities and Guarantees - Contract liabilities decreased by $12.4 million to $42.2 million, reflecting lower customer prepayments[33] - The company had outstanding letters of credit aggregating to $6.6 million as of November 30, 2024, related to performance guarantees and leases[87] Assets and Investments - Assets measured at fair value on a recurring basis as of November 30, 2024, totaled $244.4 million, including $151.2 million in cash equivalents[89]

Core Viewpoint - BAD BEAT Investing, led by Quad 7 Capital, emphasizes a strategic approach to trading, focusing on both long and short positions while educating investors on market dynamics and trading proficiency [1][2] Group 1: Company Overview - Quad 7 Capital consists of a team of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences [1] - The company has been operational for nearly 12 years and is recognized for its significant market calls, including a notable recommendation to sell everything and go short in February 2020 [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short [1] Group 2: Investment Strategy - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades [1] - The company aims to provide in-depth, high-quality research with clear entry and exit targets to save investors time [1] Group 3: Educational Benefits - Investors can learn to understand market fluctuations, execute well-researched trade ideas weekly, and utilize various trading tools through BAD BEAT Investing [2] - The service includes access to 4 chat rooms, daily analyst upgrade/downgrade summaries, and basic options trading education [2]