Mar 1, 2016

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Why These Stocks Are A Good Investment: Trinity Industries Inc (NYSE:TRN), Packaging Corporation of America (NYSE:PKG), Credit Suisse Group AG (NYSE:CS)

Why These Stocks Are A Good Investment: Trinity Industries Inc (NYSE:TRN), Packaging Corporation of America (NYSE:PKG), Credit Suisse Group AG (NYSE:CS)

Often, the herd mentality of investors compels them to dump beaten down stocks hovering around their year-long lows, simply because it seems to be the common rage. However, the rationale that goes against this view is that stocks might have tumbled over the past due to several reasons, be it company-specific or macroeconomic.

Thus, low valuations do not always mean that the stock has lost all potential. The market, as you know, has a propensity to overreact to both good and bad news, ensuing in random stock price movements that do not always rightly match up with the company’s long-term fundamentals. Hence, before dismissing these beaten-down stocks, it makes perfect sense to analyze such overreaction.

Shares in Trinity Industries Inc (NYSE:TRN) have by -33.70% year to date and are now trading 6.02% above their 52-week low, at a price of $15.84. It has shown a growth of -0.06% in the past session on when approximately 2.38 million shares were traded, against the average daily trading volume of 2.57 million. The stock failed to get pushed above the $16.05 barrier, the intraday high. Analysts have a consensus target price of $20.29 in the 12-month period. The TTM P/E ratio as of the recent close now stands at approximately 3.12.

Packaging Corporation of America (NYSE:PKG) currently trades at $40.50 which is only about 9.43% higher than the 52-week low of $44.32. The trading volume at ready counter moved to 1.43 million shares as compared to 1.29 million shares average traded volume. The company has a low P/E ratio of 10.97. The stock failed to get pushed above the $49.02 barrier, the intraday high, after opening at $48.42. Analysts have a consensus target price of $63.38 in the 12-month period. Its market capitalization has now reached to $4.70 billion.

Credit Suisse Group AG (NYSE:CS) is now 6.13% above its 52-week low level. The share price was down -2.34% from the previous closing rate after touching an intraday high of $13.60. The stock’s low point in its 52 week range is $12.56 per share, with $29.33 as the 52 week high point — that compares with a last trade of $13.33. Comparing the most recent share price to the 200 day moving average ($22.08) can also be a useful technical analysis technique. Trading volume was at 2.79 million shares versus an average volume of 2.55 million shares. The firm has a PE ratio of 6.57 times earnings.

 

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