Triton (TRTN) Shares Up 105.6% in a Year: More Upside Ahead?

Shares of Triton International (NYSE:TRTN) TRTN have had a dream run on the bourse in the past year, surging 105.6%, well above its industry’s 90.8% appreciation during the same time frame.

Given this backdrop, let’s take a look at the factors responsible for this stupendous price performance and also examine whether or not there exists scope for further upside.

We are impressed by Triton International’s commitment to reward shareholders through dividend payments and share buybacks despite the coronavirus-related adversities. Since the launch of its existing share-buyback program, the company has bought back more than 13.9 million shares. It also has a track record of consistent dividend payments. Notably, in October 2020, Triton International’s board announced an approximate 10% hike in its quarterly dividend to 57 cents per share (annually: $2.28).

Gradual increase in trade volumes and container demand bode well for the company. With easing pandemic-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third as well as the fourth quarters of 2020.

Triton anticipates the first quarter of 2021 to benefit from “near-maximum utilization and a large number of new containers going on-hire as they are produced”. For the current quarter, management estimates adjusted earnings per share to be either flat or increase slightly from the fourth quarter of 2020. Anticipating the surge in container demand to continue, Triton projects the adjusted earnings per share to be much higher in 2021 than in 2020.

The Zacks Consensus Estimate for current-quarter earnings has been revised 16.6% upward over the past 60 days. Also, the Zacks Consensus Estimate for the ongoing-year earnings has been revised 21.4% upward over the past 60 days. Adding to the bullish scenario, the consensus mark for 2022 earnings has moved 17% north during the same time frame.

Such favorable estimate revisions reflect brokers’ lack of confidence in the stock, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Worth Considerin

Investors interested in the broader Zacks Transportation sector may also consider Herc Holdings (NYSE:HRI) HRI, Textainer Group Holdings (NYSE:TGH) Limited TGH and Star Bulk Carriers (NASDAQ:SBLK) SBLK, all flaunting the same Zacks rank as Triton.

Shares of Herc, Textainer and Star Bulk have skyrocketed more than 328%, 223% and 169%, respectively, in a year’s time.

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