- Shares of railcar maker Trinity Industries (TRN +3.3%) have a long way to run, thanks to the U.S. shale boom, busy railways and stricter regulations, Dimitra DeFotis writes in a Barron's profile.
- Regulators likely will require repair and replacement of old oil tank cars, and replacement is more profitable, but analysts appear too conservative in their earnings estimates for next year, says Sprott Asset Management's John Wilson, pointing to TRN's ~$5B backlog, much of it for rail tankers with strong margins.
- TRN already has said it would reactivate a large tank-car manufacturing plant in Georgia in anticipation of new regulatory standards, and Sterne Agee's Sal Vitale expects that "will generate large incremental returns."