Textainer Group Holdings Limited (ASX: TGH) is among the top gainers of the stock market today, with the share price increasing 4.78% from $9 on its previous close to $9.43, at the time of writing.
Textainer Group Holdings Limited experiencing impressive 4.78% growth
Textainer Group Holdings Limited is a holding company where through its subsidiaries, engages in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers worldwide. The company operates through the three segments; Container Ownership, Container Management, and Container Resale. The company owns and leases standard dry freight containers, refrigerated, and other special-purpose containers.
The company’s shares seem to have an active trading volume today with a reported 647,989 contracts so far this session, a figure 462000 above the company’s average volume of 185,898 contracts. This is very positive as when it comes to trading, high volume is crucial, as the higher the volume the more liquid the stock is.
Furthermore, for the long-term investor, EPS growth rates are crucial in determining the long-term growth and valuation of a company. Textainer Group Holdings has reported to achieve an EPS growth of 199.70% for this year and a steady EPS growth of 12.00% for the next 5 years.
However, despite the positive information, the stock has a beta of 2.25. Since the beta is greater than one, it implies that the stock is more volatile than the market and therefore traders must keep close attention to the value of the stock.
On the 5th of November, investment bank Cowen Incorporated lowered their recommendation on shares of TGH, downgrading the stock from Outperform to Market Perform. Additionally, Keefe, Bruyette & Woods, Incorporated also placed the Textainer stocks at a Market Perform recommendation, according to their flash note issued to investors on the 1st of November. Both investment banks have set the price target of the stock to $11, which is $1.53 higher than the stock’s current position.
Finally, given TGH’s high trading volumes and 3.33% growth run over the week, it may be worth considering Textainer Group Holdings Limited as an investment option.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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