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GATX Corp. (NYSE:GATX) is one of the 10 best industrial distribution stocks to invest in according to hedge funds.

On May 22, GATX Corp. (NYSE:GATX) made amendments to its ongoing 5-year credit arrangement, which began back in May 2024, with a banking syndicate led by Citibank. In addition to recalibrating price terms linked to the company’s public credit rating, this change also extended the facility’s termination date by 1 year, to May 2031.

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The applicable margin on revolving loans was reduced under the new arrangement. ABR-based borrowings have margins between 0 and 30 basis points, while SOFR-based borrowings have margins between 80.5 and 130 basis points, contingent on the firm’s rating.

Furthermore, the company obtained a decreased facility fee, resetting the grid from 7 to 20 basis points to lower recurring financing costs and expand financial flexibility for future operations and investment needs.

Recent analyst ratings also offer supporting views for the stock. During early May, Susquehanna revised its view of GATX Corp. (NYSE:GATX) by increasing the target price from $210 to $218. This results in an adjusted upside potential of almost 25% at the current level. The firm also maintained its Positive rating for the stock, backed by first-quarter results.

GATX Corp. (NYSE:GATX) is a railcar leasing company that leases tank containers, freight railcars, and locomotives and provides maintenance services. The company also makes commercial aircraft jet engines and leases aircraft spare engines.

While we acknowledge the potential of GATX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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