Greenbrier's Business Profile Fits Fundamentally Changed Global Economic And Geopolitical Needs

Summary

• The recent stock market decline is providing buying opportunities to invest in companies with an otherwise solid long-term outlook.
• Greenbrier is one such company, which is set to benefit from global efforts to reduce energy use in transport, which should lead to a boost in rail transport investments.
• The latest financial results suggest that it can profitably produce and market its rail equipment products, despite recent spikes in producer prices.
• Greenbrier is especially well-positioned in Europe, where its Romanian & Polish facilities can produce at a lower cost compared with competitors.
• The Russian invasion of Ukraine is spurring renewed efforts to tie Ukraine to EU ports via rail, which should create some additional long-term demand for Greenbrier products in the region.

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Investment thesis: It is becoming increasingly clear that the world is entering a period of prolonged scarcity issues, especially when it comes to commodities, energy, food, and other vital products that are necessary to our general well-being. Companies that can

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GBX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.