5-Star Stocks Poised to Pop: Trinity Industries

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial equipment maker 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 (1933)
Market Cap	$1.48 billion
Industry	Machinery
Trailing-12-Month Revenue	$2.95 billion
Management	Chairman/CEO Timothy Wallace (since 1999) CFO William McWhirter, II (since 2005)
Return on Equity (Average, Past 3 Years)	10.1%
Cash/Debt	$543 million / $1.8 billion
Dividend Yield	1.7%
Other Highly Rated Industrial Equipment Stocks	Caterpillar (NYSE: CAT) United Technologies (NYSE: UTX)
CAPS Members Bullish on TRN Also Bullish on	General Electric (NYSE: GE) Chesapeake Energy (NYSE: CHK)
CAPS Members Bearish on TRN Also Bearish on	Rio Tinto (NYSE: RTP) Electronic Arts (Nasdaq: ERTS)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98.2% of the 1,146 members who have rated Trinity believe the stock will outperform the S&P 500 going forward. These bulls include youtnodknoem and All-Star Teacherman1, who is ranked in the top 5% of our community.

Just last month, youtnodknoem explained why the stock is particularly perfect for this series:

It's poised to pop, due to its strong position in Wind, and Highway construction. What I would really like to see is a shuffling of management, and drastic reorganization of this business structure. I think they should sell off their rail car division and focus more on Barges, Freeway Construction, and Green Energy.

In a pitch from the same day, Teacherman1 expands on Trinity as a remarkably reliable way to earn some income. Here's an excerpt:

They just announced their Q3 dividend payment of $0.08 a share on Oct. 30, to holders as of Oct 15. This is their 182nd consecutive dividend. While this is only about 1.8% at the current price, it is still paying you to hold for long term profits. ... Their current assets to current liabilities run about 2 to 1, and their total assets to total liabilities are about 1.7 to 1. Due to the nature of their business (manufacturing), they do have a substantial amount of debt, but it is not out of line, and is reasonably manageable. ... This is not a short term trader stock, unless you are the greatest ever at timing market moves; but it is a good solid stock for the longer term investor.

What do you think about Trinity, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!