Freightcar America (RAIL – Free Report) shares soared 5.1% in the last trading session to close at $6.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 19.5% loss over the past four weeks.
Earlier in the month, the company reported better-than-expected earnings per share for the fourth quarter of 2024. Revenues and earnings per share improved year over year. The company, which reported a 56% year over year growth in 2024 revenues, successfully launched into the tank car segment, expanding its reach and competitive advantage in a higher-margin segment. Shares of the company have gained handsomely since the earnings release on March 12.
This rail car maker is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +900%. Revenues are expected to be $124.92 million, down 22.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Freightcar America, the consensus EPS estimate for the quarter has been revised 20% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RAIL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Freightcar America belongs to the Zacks Transportation – Equipment and Leasing industry. Another stock from the same industry, Ryder (R – Free Report) , closed the last trading session 0.2% lower at $144.87. Over the past month, R has returned -9.1%.
For Ryder
Financial Market Newsflash
No financial news published today. Check back later.
