+ Watch TRN
on My Watchlist
The Company manufactures and sells railcars and railcar parts, inland barges, concrete and aggregates, highway products, beams and girders used in highway construction, tank containers and structural wind towers.
I chose TRN for railroad industry exposure instead of one of the operators because, via 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 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, as evidenced by the fact that it has beat earnings estimates 11 of the last 12 quarters and has often beat those estimates by a lot.
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 over the long term, which is what my interest is. 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 bottoming for the near term right now, before it runs up through the end of the year. Bottom line -- this rare miss by TRN is a good buying opportunity.
Look at her go!
More of my thesis on TRN (and a bunch of other picks) is here ..."Large-Cap And Mid-Cap Values Remain, Part 2" $GE, $KR, $TRNhttp://seekingalpha.com/article/1753312-large-cap-and-mid-cap-values-remain-part-2comments are appreciated
My price target has now been updated in my new summary article that includes performance tracking for all of my calls to date, price target updates for stocks I've not yet written new articles about and a general market outlook discussion (http://seekingalpha.com/article/1936361-2013-performance-and-2014-updates).
TRN new analysis w/ price target -- Trinity Industries: Triple, Stock Split, Now What? http://seekingalpha.com/article/2274723-trinity-industries-triple-stock-split-now-what
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