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General Finance (GFN) Gains But Lags Market: What You Should Know

In the latest trading session, General Finance (GFN) closed at $13.29, marking a +0.3% move from the previous day. The stock lagged the S&P 500's daily gain of 1.86%. Elsewhere, the Dow gained 1.63%, while the tech-heavy Nasdaq added 2.95%.

Heading into today, shares of the owner of mobile storage, liquid containment and modular space businesses had lost 15.06% over the past month, lagging the Business Services sector's loss of 10.74% and the S&P 500's loss of 8.85% in that time.

Wall Street will be looking for positivity from GFN as it approaches its next earnings report date. This is expected to be November 6, 2018. In that report, analysts expect GFN to post earnings of -$0.01 per share. This would mark year-over-year growth of 75%. Meanwhile, our latest consensus estimate is calling for revenue of $86.10 million, up 11.93% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.23 per share and revenue of $363.55 million, which would represent changes of +283.33% and +4.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GFN. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GFN currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note GFN's current valuation metrics, including its Forward P/E ratio of 57.61. Its industry sports an average Forward P/E of 18.97, so we one might conclude that GFN is trading at a premium comparatively.

It is also worth noting that GFN currently has a PEG ratio of 5.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Business - Services stocks are, on average, holding a PEG ratio of 2.82 based on yesterday's closing prices.

The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 67, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GFN in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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