Trinity Riding the Rails of Success

TRN provides rail transportation products and services under the TrinityRail name to customers in many industries, including agriculture, construction, and energy. It operates in a competitive North American environment but has stood out among its peers of late.

For instance, the company possesses a 12.2% operating margin, which is better than nearly 66% of its industry peers. It also has demonstrated efficient capital use as evidenced by its profits in nine of the last 10 years. Also, TRN’s market capitalization of nearly $3 billion and nearly 3.4% current dividend yield have helped it draw lots of investor interest in recent weeks.

It’s no wonder TRN shares are up 37% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Trinity Shares in Demand

Institutional volumes reveal plenty. Recently, TRN has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in TRN shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Trinity.

Trinity Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TRN has had strong sales and earnings growth:

• 3-year sales growth rate (+19%)
• 3-year earnings growth rate (+60.6%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +38.1%.

Now it makes sense why the stock has been powering to new heights. TRN has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Trinity has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report twice in the last year. The blue bars below show when TRN was a top pick…riding higher with time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Trinity Price Prediction

The TRN rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in TRN at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.