The USD 80, corresponding to the trendline, is in line of sight.
The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.95 by the Thomson Reuters consensus for this year. Analysts revised upward EPS estimates for this year and that let see a great potential for the security on the stock market. Moreover, revenues are expected to grow year after year.
Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In weekly and daily data, the 20-period moving average helps the stock to keep its uptrend.
According to both technical and fundamental elements, it seems opportune to take a long position at the breakout of the USD 73.25. The bullish trend should allow the security to reach the trendline, around USD 80. A stop loss will be placed under the entry point to avoid a downtrend.
The Greenbrier Companies, Inc. is a designer, manufacturer, and marketer of railroad freight car equipment in North America, Europe, and South America. It is a manufacturer and marketer of marine barges. It offers railcar management, regulatory compliance services and leasing services to railcar owners or other users of railcars. The Company operates through three segments: Manufacturing, Maintenance Services, and Leasing & Management Services. The Manufacturing segment produces automotive railcar products. The Maintenance Services segment performs wheel and axle servicing, railcar maintenance and produces a variety of parts for the rail industry in North America. The Leasing & Management Services segment operate railcar leasing business in North America and offers management services, such as software and services that include railcar maintenance management, fleet logistics and railcar accounting services. The Leasing & Management Services segment owns approximately 13,400 railcars.