The Greenbrier Companies, Inc. (NYSE:GBX) Quarterly Earnings Preview and Growth Potential

• Earnings per share (EPS) of $0.90 and projected revenue of $838 million expected in the upcoming quarterly earnings.
• GBX added to the Zacks Rank #1 (Strong Buy) list, indicating significant growth characteristics and an 18.2% increase in the Zacks Consensus Estimate for current year earnings.
• Favorable PEG ratio of 1.81 and a Growth Score of A highlight GBX's undervaluation relative to its growth prospects.

The Greenbrier Companies, Inc. (NYSE:GBX) is a prominent player in the railroad freight car equipment industry. As a key manufacturer, GBX designs, builds, and markets railcars in North America, Europe, and South America. The company competes with other transportation giants like ZIM Integrated Shipping Services, Westinghouse Air Brake Technologies Corporation, and C.H. Robinson Worldwide, Inc.

On January 3, 2025, GBX is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $0.90 and projected revenue of $838 million. This comes after GBX's addition to the Zacks Rank #1 (Strong Buy) growth stocks list, as highlighted by Zacks Investment Research. The recognition is due to the company's impressive growth characteristics, including an 18.2% increase in the Zacks Consensus Estimate for current year earnings over the past 60 days.

GBX's growth potential is further underscored by its favorable PEG ratio of 1.81, compared to the industry average of 2.37. A PEG ratio, or price/earnings to growth ratio, helps investors understand a stock's value while considering its earnings growth. A lower PEG ratio suggests that GBX is potentially undervalued relative to its growth prospects. Additionally, GBX has achieved a Growth Score of A, indicating strong growth potential.

The company's financial metrics also paint a promising picture. With a price-to-earnings (P/E) ratio of approximately 12.29, GBX's market valuation of its earnings is relatively moderate. The price-to-sales ratio of about 0.56 suggests that the stock is trading at a low price compared to its sales, while the enterprise value to sales ratio of approximately 0.98 reflects the company's total valuation in relation to its sales.

GBX's financial health is further supported by an enterprise value to operating cash flow ratio of around 10.41, indicating a moderate valuation based on cash flow generation. The earnings yield of approximately 8.14% provides insight into the return on investment for shareholders. Despite a debt-to-equity ratio of about 1.28, indicating a higher level of debt compared to equity, the current ratio of approximately 1.68 suggests that GBX has a good level of liquidity to cover its short-term liabilities.