6 reasons why investors should add GATX to their portfolio


GATX Corporation GATX benefits from its shareholder-friendly initiatives, through which it rewards its shareholders in the form of dividend payments and share buybacks.

With that in mind, let’s look at the factors that make this stock an attractive pick.

What Makes GATX an Attractive Choice?

A top performer: A look at the company’s stock performance shows that the stock has put on an impressive run in the stock market over the past six months. GATX shares are up 8.5% over the past six months.

Zacks Investment Research
Image source: Zacks Investment Research

Solid Zacks Rank: GATX has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. The company is currently a convincing investment offer.

Revisions to the north estimate:The direction of estimate revisions serves as an important guide to a stock’s price. Over the past 90 days, the Zacks Consensus estimate for 2023 GATX earnings is up 1.9% year-on-year.

Positive earnings surprise story: GATX has an impressive earnings surprise history. The company delivered an earnings surprise of 16.52% on average over the past four quarters.

profit expectations: Earnings growth and stock price gains often indicate a company’s prospects. For 2023 and 2024, GATX earnings are expected to grow 10.54% and 5.46% year over year, respectively.

growth factors:Gradual improvement in the North American railcar leasing market is supporting GATX sales. Demand for most wagon types in the GATX fleet remains robust and absolute lease rates have increased. Looking into 2023, GATX expects the rail vehicle leasing environment in North America to remain favorable.

Rail International’s segment profit in 2023 is likely to rise as solid demand for new and existing railcars in Europe and India continues. Coupled with higher GATX engine leasing revenues, portfolio management is expected to deliver higher segment profit in 2023.

We are optimistic about GATX’s efforts to reward its shareholders through dividends and buybacks. On Jan. 27, 2023, GATX’s board of directors announced a 5.8% increase in its quarterly dividend to 55 cents from the previous 52 cents. Continued dividend payments underscore GATX’s commitment to increasing shareholder value and underscore its strong financial position and bright prospects.

Other stocks to consider

A few other high-ranking stocks from the broader Zacks Transportation sector are Copa Holdings, S.A CPA, Alaska Air Group, Inc. ALK and American Airlines EEL. Copa Holdings currently holds a #1 Zacks rank, while Alaska Air and American Airlines currently hold a #2 Zacks rank. You can see the full list of today’s Zacks #1 Rank stocks can be found here.

Copa Holdings has an expected earnings growth rate of 39.83% for the year to date. CPA delivered a trailing four-quarter earnings surprise averaging 33.35%.

The Zacks Consensus estimate for CPA’s year-to-date revenue is up 21.1% over the last 90 days. CPA’s shares are up 13.3% over the past three months.

Alaska Air has a year-to-date earnings growth rate expected of 32.64%. ALK delivered a trailing four-quarter earnings surprise averaging 8.98%.

The Zacks Consensus estimate for ALK’s year-to-date revenue is up 11.4% over the past 90 days. ALK’s shares are up 0.8% over the past three months.

AAL has an expected earnings growth rate of more than 100% for the year to date. AAL delivered a trailing four-quarter earnings surprise averaging 7.79%.

The Zacks Consensus estimate for AAL’s year-to-date revenue is up 31.1% over the last 90 days. AAL shares are up 15.8% over the past three months.

5 shares are doubled

Each was handpicked by a Zacks expert as the #1 most popular stock to gain +100% or more in 2021. Previous recommendations are up +143.0%, +175.9%, +498.3%, and +673.0%.

Most of the stocks in this report fly under Wall Street’s radar, which presents a great opportunity to get on the ground floor.

Check out these 5 potential home runs today >>

Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click here to get this free report

Copa Holdings, SA (CPA): Free Stock Research Report

American Airlines Group Inc. (AAL): Free Stock Research Report

Alaska Air Group, Inc. (ALK): Free Stock Research Report

GATX Corporation (GATX): Free Stock Research Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *