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Trinity Industries, Inc. (TRN) continues to benefit from its consistent shareholder-friendly initiatives through which it rewards its shareholders in the form of dividend payments and share repurchases.

Bullish full-year 2024 earnings guidance looks encouraging and raises optimism about the stock.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes TRN an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of TRN have gained 15% over the past three months, outperforming the industry’s surge of 13.4%.

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Solid Rank & VGM Score: TRN has a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 30 days, the Zacks Consensus Estimate for 2024 earnings has been revised 2.7% upward.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For second-quarter 2024, TRN’s earnings are expected to grow 43.48% year over year. For 2024, the company’s earnings are expected to grow 8.70% year over year.

Growth Factors: Trinity’s first-quarter 2024 performance reflected strength across both its segments — Railcar Leasing and Management Services Group and Rail Products Group. Anticipating both its segments to continue performing well, management raised the earnings per share guidance for 2024 to the range of $1.35 to $1.55 (which excludes items outside of the company’s core business operations) from $1.30 to $1.50 guided previously. The raised earnings guidance raises optimism about the stock.

Trinity’s consistent initiatives to reward its investors through dividends and share repurchases look encouraging. Trinity rewarded its shareholders with $23 million during first-quarter 2024. Such moves instill investor confidence and positively impacts the company's bottom line.

Other Stocks to Consider

Some other top-ranked stocks for investors’ consideration in the Zacks Transportation sector include GATX Corporation GATX and Wabtec Corporation WAB. Each stock currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GATX has an encouraging earnings surprise history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the other). The average beat is 7.49%.

The Zacks Consensus Estimate for 2024 earnings has been revised 3% upward over the past 90 days. GATX has an expected earnings growth rate of 6.79% for 2024. GATX shares have risen 18.4% in the past year.

Wabtec’s solid performance in the Freight and Transit segments is boosting its top line. The Zacks Consensus Estimate for WAB’s 2024 earnings has improved 28.37% over the past 90 days. Shares of WAB have surged 64.3% in the past year.

WAB’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 11.46%.

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