American Railcar Industries, Inc. - Momentum

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
 
Zacks Investment Research