Billionaire Carl Icahn Dumps Greenbrier Companies (GBX)

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FreightCar America, Inc. (NASDAQ:RAIL) and Westinghouse Air Brake Technologies Corp (NYSE:WAB) are two of Greenbrier’s key competitors. FreightCar trades at a forward P/E of 19x and Westinghouse is at 15x year-ahead EPS, compared to Greenbrier’s 7x. FreightCar focuses on aluminum-bodied railcars and has the lowest return on equity (13.7%) of the bunch. Westinghouse, meanwhile, trades on the high-end at 18x trailing earnings and 15x cash flow. FreightCar has billionaire Jim Simons as one of its big name investors (check out Jim Simons’ top bets).

Oshkosh Corporation (NYSE:OSK) is another company that Icahn is looking to dump. Oshkosh appears cheap on a P/E basis at 12x earnings, compared to Terex (23x), but we believe investors might be able to find better value in Icahn’s other major auto manufacturer play: Navistar. Billionaire Ken Griffin was backing Icahn last quarter with a 150% increase in his stake (check out Ken Griffin’s newest picks).

With Icahn dumping a significant portion of Oshkosh and Greenbrier, there are rumors that he’s thinking of getting into Hewlett-Packard Company (NYSE:HPQ). The computer company is up 15% over the past month on the back of speculation over Icahn’s interest. For the time being, we believe that Dell might be a better tech investment than HP, given the latter’s near-stagnant 5-year EPS growth. Interestingly, Billionaire Ray Dalio – founder of Bridgewater Associates – did up his stake in HP almost 20% last quarter (check out Ray Dalio’s key bets).

To recap: Greenbrier is still a solid bet despite Icahn’s exit. The downward pressure over the last week might give investors a solid buying opportunity, and bulls should look toward the company’s solid expected EPS growth and attractive sales valuation. For more of Carl Icahn, check out some recent coverage below:

Carl Icahn is getting out of Oshkosh, should you?

Icahn protégé cashes out of Ralcorp

Carl Icahn and MHR set their sights on Navistar

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