American Railcar Industries, Inc. - Momentum
November 07 2011 - 7:00PM
Zacks
American Railcar Industries, Inc. (ARII) was on fire in
October, gaining more than 50% after climbing from $15 to $24. With
an impressive Q2 earnings surprise of 90% and rising estimates,
this Zacks #1 Rank stock is shipping healthy amounts of momentum.
Company Description
American Railcar Industries, Inc. sells hopper and
tank railcars in North America. The company was founded in 1988 and
has a market cap of $533 million.
October was a great month for the overall market,
but it was an even better month for ARII, jumping more than 50%
after reporting strong Q2 results that came in well ahead of
expectations.
Third-Quarter Results
Revenue for the period was up 94% from last year to
$126 million. Earnings also came in strong at 19 cents, 90% ahead
of the Zacks Consensus Estimate.
The good quarter was driven by a big jump in rail
car shipments, increasing to 1,340 from 420 in the same period last
year. The company's backlog also spiked, increasing to 7.110 from
1.050 last year.
Estimates
We saw some very bullish movement in estimates off
the good quarter, with the current-year estimate jumping 242% to 24
cents. The next-year estimate is bullish too, pegged at $1.45, a
516% growth projection.
Valuation
With a PEG ratio of .20, ARII is well below the
benchmark of 1 for value.
12-Month Chart
On the chart, shares blasted higher in October in
the strong market. Take a look below.
Michael Vodicka is the Momentum Stock Strategist
for Zacks.com. He is also the Editor in charge of the
market-beating Zacks Whisper Trader Service.
AMER RAILCAR (ARII): Free Stock Analysis Report
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