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Why Trinity Industries Is Poised to Keep Chuggin'

Monday - 4/1/2013, 10:43am  ET

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railcar manufacturer Trinity Industries has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Trinity and see what CAPS investors are saying about the stock right now.

Trinity facts

Headquarters (founded)

Dallas (1933)

Market Cap

$3.6 billion

Industry

Railroads

Trailing-12-Month Revenue

$3.8 billion

Management

Chairman/CEO Timothy Wallace (since 1999)

CFO James Perry (since 2010)

Return on Equity (average, past 3 years)

7.9%

Cash/Debt

$573.0 million / $3.1 billion

Dividend Yield

1%

Competitors

American Railcar Industries

Clipper Windpower

Lafarge North America

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,059 members who have rated Trinity believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, LAVol, succinctly summed up the Trinity bull case for our community:

Oil has to be moved from the shale plays. With the government holding up pipeline construction, the best way to move the oil is by rail. Someone has to build the oil rail cars and Trinity is the best play for oil rail cars.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Trinity may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

This article was originally published as Why Trinity Industries Is Poised to Keep Chuggin'on Fool.com

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