5-Star Industrial Stocks Poised to Pop: Trinity Industries

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railcar manufacturer Trinity Industries (NYSE: TRN  ) has earned a coveted five-star ranking.

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

Trinity facts

Headquarters

Dallas (1933)

Market Cap

$2.6 billion

Industry

Railroads

Trailing-12-Month Revenue

$3.7 billion

Management

Chairman/CEO Timothy Wallace (since 1999)
CFO James Perry (since 2010)

Return on Equity (Average, Past 3 Years)

6.6%

Cash/Debt

$294.1 million / $3.0 billion

Dividend Yield

1.4%

Competitors

American Railcar Industries (Nasdaq: ARII  )
Clipper Windpower
Lafarge North America

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,048 members who have rated Trinity believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, djohn1969, succinctly summed up the bull case for our community:

[V]ia its railcar manufacture and leasing business units, Trinity benefits from spikes in the railroad industry, but is far less susceptible to the multitude of headwinds the railroad operators face. Through its construction and highway business units, Trinity will also benefit from the continuing economic recovery as infrastructure investment resumes. Trinity is a strong and well-managed company.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Trinity may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian D. Pacampara and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On October 24, 2012, at 7:28 PM, DAG1996MF wrote:

    I should've mentioned that I don't believe TRN is nearly as undervalued as it was when I was buying -- in the $22-23 range, with an average price just over $23. Trinity is still one of my favorite holdings and I have no doubt that the company will continue to trend higher -- today's miss was an anomaly and no more than a bump in the road. In fact, I'll be adding to my TRN position when I think the short-term bottom from this news has been reached. I expect that to be around $28-29, depending on how the market as a whole does, and I believe the market is short-term bottoming right now before running up through the end of the year.

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