Trinity Industries Inc. (NYSE:TRN) has been trading in a sideways range since March. While in the range, the stock has formed a resistance line and a support line. If the stock breaks through the resistance or the support, a big move is expected. Read more to learn how to take advantage of this opportunity.Trinity Industries Inc. (TRN) sells and leases railroad products and railcar maintenance services in North America. The company operates under the name TrinityRail in three main segments: Railcar Leasing and Management Services Group, Rail Products Group, and All Other.
The company is seeing weak performance in its Rail Products Group due to low railcar deliveries and fewer railcars sold. TRN was negatively affected by the pandemic, as disruptions hurt railcar demand, which weighed on lease rates.
While the company’s cash balance of $178 million is low, its current ratio of 2.9 indicates it has enough liquidity to handle short-term obligations. Unfortunately, though, the company has a negative profit margin.