On Thursday, Trinity Industries stock surged to the highest point since late December 2022. The rise came a day after it reported a 371% increase in first quarter earnings. Also Thursday, the Relative Strength (RS) Rating for Trinity stock soared 19 points, moving into the 80-plus percentile with an upgrade to 88, an increase from 69 the day before.
The upgraded 88 RS Rating shows that Trinity stock outperformed 88% of all stocks in IBD's database over the past year. Market research shows that the market's biggest winners tend to have an 80 or better RS Rating as they launch their biggest price moves.
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Trinity Stock Ratings Among The Best
Among its other ratings Trinity stock has a near-best 98 Composite Rating, out of 99. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
It carries an 83 Earnings Per Share Rating, a healthy B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A superb and E dismal. Finally, it has a B Accumulation/Distribution Rating, a gauge of institutional investing. The B rating shows that ETFs, insurance company funds and the like are fairly heavy buyers of its stock.
On Wednesday Dallas-based Trinity reported a 371% rise in earnings to 33 cents per share, up from 7 cents a year earlier. The prior quarter its EPS rose 86%. Revenue last quarter climbed 26% to $809.6 million, its weakest rise after sales gains of 73%, 65% and 35% the prior three periods.
Stock Price Surges On Robust Earnings
Trinity Industries formed a long cup-with-handle pattern starting last year. Then it moved sideways starting in mid-December before finally rising above its prior buy point Wednesday. Trinity stock surged nearly 14% Wednesday on its strong earnings report. It continued rising Thursday.
It's not currently offering a proper buying opportunity. See if the stock goes on to build a sound pattern that could kick off a new climb.
Trinity stock holds the No. 2 rank among its peers in the nine-stock Transportation-Equipment Manufacturing industry group. Blue Bird is the top-ranked stock in the group.
IBD's proprietary rating identifies share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks compares to all the other stocks in our database.
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