Move on This $5 Transport Stock

Very quietly, shares of FreightCar America (Nasdaq: RAIL) have been moving higher… and it’s time you took notice.

In March, shares of FreightCar America traded from $3.50 up to $6.75 – the positive momentum coming thanks to the transportation of bulk commodities.

You see, FreightCar America designs, manufactures and sells railcars for containerized freight products in North America.

Founded in 1901 and headquartered in Chicago, Illinois, FreightCar America offers railcars that include…

  • Open-top hoppers
  • Gondolas
  • Hybrid aluminum/stainless steel railcars
  • Coal cars
  • Bulk commodity cars
  • Coil steel cars
  • Woodchip hoppers
  • Articulated bulk container railcars.

But here’s where things get interesting…

Earlier this month, the company announced that it’s on track to double its annual railcar production capacity to between 4,000 and 5,000 railcars during 2023, which coincides with the growing railcar demand cycle.

If Larry Fink is right – and the “end of globalization” that he predicted is occurring right now – then FreightCar America, at $5 per share, could be a very attractive play.

Zacks calls it “a fast-paced momentum stock at a bargainand I agree.

 

Action Plan: With a market cap of just $100 million and a price-to-sales ratio of around 0.5, this could be one of the cheapest – and most explosive – ways to play the “end of globalization” trend that’s emerging in early 2022. With earnings expected to go from a loss of $0.18 in 2022 to a gain of $0.30 in 2023, getting positioned in this stock for around $5 seems like a timely play.

And if you are looking for another timely value play, Karim has found a stock for less than $2 that fits the bill. We both agree there isn’t a single stock trading at a better valuation.

The question is… why?

Well… the reason makes perfect sense when Karim lays it out.

As he explains right here, this company’s unusual business model has created a rare situation where it is both cheap and highly profitable.

I don’t want to spoil the fun.

So check out Karim’s free presentation on “The Last Great Value Stock” right here.

Monday Market Minutes:

  • Fintech for cheap: The fintech sector is now “on sale” according to Wells Fargo analyst Jeff Cantwell. In a rare move, last Friday he upgraded all 14 stocks in this entire sector group – notably PayPal (Nasdaq: PYPL) and Shopify (NYSE: SHOP). Tracking.
  • Bright days ahead? Sunshine Biopharma (Nasdaq: SBFM) popped above $10 shortly after news that the company’s mRNA molecules killed drug-resistant cancer cells in a lab dish. While testing is still in early stages, this is promising.
  • Sailing away!!! SailPoint Technologies (NYSE: SAIL) was up 30% premarket after announcing that it had entered into a definitive agreement to be acquired by Thoma Bravo for $65.25 per share.
  • All is well! Citi upgraded Wells Fargo (NYSE: WFC) to a “Buy.” The bank’s balance sheet “clearly stood out” in terms of capital flexibility and asset sensitivity, Citi analysts said.
  • Nio navigating supply issues: Electric vehicle company Nio (NYSE: NIO) dropped 10% premarket after COVID-19 restrictions in China cause production issues.
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