Greenbrier Companies: Buy Into The Fear

(7min)

Summary

  • Revisiting Greenbrier Companies, we see a buy opportunity as the stock dips further, supported by strong margins, limited tariff impact, and a dividend increase.
  • Q2 earnings missed expectations with revenues down 11.7% YoY, but gross margin remained strong at 18.2%, and operating income was $83 million.
  • The company raised its margin guidance and dividend, despite narrowing railcar delivery guidance and lowering revenue expectations, reflecting a mixed but promising outlook.
  • Minimal tariff impacts, a valuation reset, and a growing dividend make GBX attractive under $40, even amid recessionary fears.
  • Looking for more investing ideas like this one? Get them exclusively at BAD BEAT Investing. Learn More »
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Today, we revisit The Greenbrier Companies, Inc. (NYSE:GBX) stock. We have been holding a long-term position consisting of profit from a trade where we were buying in the $26-$28 range and after seeing it run to over $50,

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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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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