Here's Why Investors Should Bet on Greenbrier Stock Right Now

The Greenbrier Companies GBX is benefiting from its robust operational efficiency, boosting its prospects. The company’s shareholder-friendly initiatives are also commendable. Due to these tailwinds, GBX shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Factors Favoring GBX Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for Greenbrier’s earnings per share has been revised upward by 28.16% over the past 60 days for the current year. For 2026, the consensus mark for earnings per share has moved 2.78% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 3.2% over the past 90 days, surpassing the  Zacks Transportation - Equipment and Leasingindustry’s 0.2% fall.

Positive Earnings Surprise History:Greenbrier has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing three quarters, delivering an average surprise of 70%.

Solid Zacks Rank: GBX currently carries a Zacks Rank #2 (Buy).

Bullish Industry Rank:The industry to which Greenbrier belongs to currently has a Zacks Industry Rank of 51 (out of 246). Such a favorable rank places it in the top 21% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative in this context.

Growth Factors: Greenbrier's proactive initiatives to boost operational efficiency are encouraging and reflect a focused strategy on long-term value creation. In the third quarter of fiscal 2025, the company delivered strong results with 18% gross margin and nearly $140 million in operating cash flow, driven by disciplined cost controls and improved working capital. With 98% lease fleet utilization and a $2.5 billion railcar backlog, GBX is well-positioned to maintain momentum in a dynamic economic environment.

Moreover, strategic moves, such as closing a European facility expected to save $10 million annually and extending $850 million in credit facilities, enhance operational efficiency and financial flexibility. The repurchase of 507,000 shares and continued focus on recurring revenues through its Leasing & Fleet Management segment signal confidence in future performance.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider LATAM Airlines Group LTM and SkyWest SKYW.

LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining two quarters, delivering an average beat of 4.04%.

SKYW currently sports a Zacks Rank #1.

SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research