LAKE OSWEGO – In the latest trading session, shares of Greenbrier Companies (NYSE:GBX) saw a downturn, closing at $35.81, a 1.46% decline from the previous day's close. This performance lagged behind the broader S&P 500 index, which dropped by 0.08%. The Dow Jones Industrial Average, however, edged up by 0.16%, while the Nasdaq Composite Index fell by 0.22%.
In recent weeks, GBX has faced a notable decrease of 10.03% over the past month, underperforming the Transportation sector's loss of 3.11% and moving in contrast to the S&P 500's gain of 1.42%. This decline has caught the attention of investors who are now looking ahead to Greenbrier's upcoming earnings report with heightened interest.
Analysts are setting their expectations for the company's next earnings report, predicting a significant increase in year-over-year earnings. The forecast is for earnings of $0.71 per share, which would represent an impressive 1320% growth from the same period last year. Revenue projections for the quarter are also optimistic, with an anticipated $886.5 million, up 15.66% from the prior-year quarter.
For the full fiscal year, Zacks Consensus Estimates suggest that Greenbrier may see earnings of $3.50 per share and revenues totaling $3.71 billion. These figures would mark a change of +17.85% in earnings and a -5.95% shift in revenue from the previous year.
Investors are also evaluating Greenbrier's valuation metrics; the company's Forward Price-to-Earnings (P/E) ratio stands at 10.39, which is favorable compared to the industry average P/E ratio of 11.05. However, when it comes to the Price-to-Earnings Growth (PEG) ratio, GBX trades at 1.48, which is higher than the industry average of 1.11.
Currently holding a Zacks Rank #3 (Hold), Greenbrier is part of the Transportation - Equipment and Leasing industry, which is ranked at 196 by Zacks Industry Rank, placing it in the bottom 23% of more than 250 industries evaluated by Zacks.
As market participants await Greenbrier’s financial results, they will pay close attention to how these figures align with analysts' estimates and what impact they may have on the company's stock performance moving forward.
InvestingPro Insights
In light of the recent market activity, we delve into key data and insights from InvestingPro to better understand the dynamics surrounding Greenbrier Companies.
InvestingPro's real-time data reveals a market cap of 1110M USD and a P/E ratio of 18.48. The company's P/E ratio for the last twelve months as of Q4 2023 stands at 13.89, while the PEG ratio for the same period is 0.52. These metrics indicate a modest valuation, especially when considering the significant earnings growth expected by analysts.
Turning to InvestingPro Tips, it's notable that Greenbrier has been aggressively buying back shares, which could be a sign of management's confidence in the company's future prospects. However, it's also important to note that the company has a significant debt burden and is quickly burning through cash.
In addition, Greenbrier's stock price has experienced substantial volatility, with a significant drop over the last three months. This could present an opportunity for investors, given that the company's shares are trading at a low P/E ratio relative to near-term earnings growth and the company is expected to be profitable this year.
For more insights like these, consider the InvestingPro product, which offers a wealth of additional tips and data on Greenbrier and many other companies.
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