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5-Star Stocks Poised to Pop: Trinity Industries

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial equipment manufacturer Trinity Industries (NYSE: TRN  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Trinity's business, and see what CAPS investors are saying about the stock right now.

Trinity facts

Headquarters (founded)

Dallas, Texas (1933)

Market Cap

$1.06 billion

Industry

Construction and farm machinery and Heavy Trucks

TTM Revenue

$4.1 billion

Management

Chairman/CEO Timothy Wallace (since 1999)
CFO William McWhirter, II (since 2005)

Return on Equity (average, last three years)

17.2%

Dividend Yield

2.4%

Competitors

American Railcar Industries (Nasdaq: ARII  )
FreightCar America (Nasdaq: RAIL  )

CAPS members bullish on TRN also bullish on:

Transocean (NYSE: RIG  )
Freeport-McMoRan (NYSE: FCX  )

CAPS members bearish on TRN also bearish on:

Caterpillar (NYSE: CAT  )
MasterCard (NYSE: MA  )

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 1,058 of the 1,077 members who have rated Trinity -- or 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include DETBJR and randf.

Two weeks ago, DETBJR tapped Trinity as a tantalizing trinity of infrastructure plays: "Wind, rail, construction - good stimulus plan company. They make stuff we're gonna need."

In a pitch from late last month, randf follows that line of thinking and underlines more of Trinity's long-term tailwinds:

The company has been run conservatively and yet has made good profits for many years. They make some things we gotta have, in both rich and lean times, such as highway guardrail and bridge girders. And I think the towers they make for wind turbines are a good plan for the long term future.

What do you think about Trinity, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 28, 2009, at 12:46 PM, pondee619 wrote:

    Hey Brian:

    This "five star stock" has trailed the S&P over the past three and one year periods. It has been highly rated (4 or 5 stars) for that time. What makes you think it is "Poised to Pop" now.

  • Report this Comment On January 28, 2009, at 11:50 PM, smaulcap wrote:

    Trinity is a great company. Trinity matters when it comes to infrastructure. Wind power as well, they build the towers. Trinity will do well. Not doing bad right now, in fact. I have a position. I'll buy more. A good buy at under fifteen bucks, my opinion.

  • Report this Comment On January 29, 2009, at 12:06 AM, smaulcap wrote:

    Trinity is poised because it's an Obama play. Infrastructure and wind power are Trinity's business, and Obama's ambition. Trinity also builds rail cars and tanker cars. The stock priced has dropped a bit because Trinity temporarily shut down its rail car business and laid off a few hundred of it's rail car workers. As you may know, the rail shipping business is down, nobody is buying rail cars now, much. I think that's a good cost cutting move on the part of trinity. Their bread and butter is infrastructure.

    I hold TRN, I'll buy more while it's trading under $15.00

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