“Railcar maker The Greenbrier Companies (GBX) is performing well. The company earned 57 cents a share in its fiscal second quarter beating analysts’ forecast by over 22%.
“The company is optimistic that the recovery in its rail markets is in the early phase. Greenbrier’s new railcar backlog of 12,500 units with an estimated value of $1.1 billion bodes well for future earnings.
“Greenbrier shares trade at a single-digit forward P/E versus prospects for EPS to increase five-fold in fiscal 2012 and another 30% in fiscal 2013.
“Volatile Greenbrier shares suit risk-tolerant growth and value investors. Buy Below $15.75. Sell Above $18.45. Stop-Loss: $11.95. Risk Rating: Above Average.”
- Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, April 2012