Westinghouse Air Brake Technologies Corporation’s WAB, operating as Wabtec Corporation, top line is bolstered by its robust segmental performance. The shareholder-friendly approach bodes well for the company. Due to the tailwinds, WAB shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
Factors Favoring WAB Stock
Robust Price Performance: A look at the company’s price trend reveals that its shares have surged 66.8% over the past year, surpassing the industry’s 47.2% rise.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 5.1% over the past 60 days for the current quarter. For the current year, the consensus mark for earnings per share has moved 1.6% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Solid Zacks Rank: WAB currently carries a Zacks Rank #2 (Buy).
Positive Earnings Surprise History: Wabtec has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.8%.
Bullish Industry Rank: The industry to which Wabtec belongs currently has a Zacks Industry Rank of 63 (out of 251). Such a favorable rank places it in the top 25% of Zacks industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Growth Drivers: Wabtec is benefiting from the robust performance of its Freight and Transit segments, boosting its top line. The Freight segment is benefiting from growth in services and components, while the Transit segment is seeing strong aftermarket and original equipment manufacturing sales.
The company’s commitment to rewarding its shareholders through dividends is commendable. In the second quarter of 2024, WAB paid out a dividend of 20 cents to its shareholders.
WAB expects to continue its strong performance due to solid underlying demand and a robust backlog. With this positive outlook, management has updated its current-year revenue and earnings per share guidance. Wabtec raised its 2024 adjusted EPS forecast to a range of $7.20-$7.50, up from the previous range of $7.00-$7.40. The Zacks Consensus Estimate for 2024 earnings is currently pegged at $7.46.
Meanwhile, Wabtec kept its revenue guidance unchanged, maintaining a range of $10.25-$10.55 billion. The Zacks Consensus Estimate for 2024 revenues is currently pegged at $10.39 billion, just below the midpoint of the guided range.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider C.H. Robinson Worldwide CHRW and Air Transport Service Group ATSG.
C.H. Robinson Worldwide currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. CHRW has an expected earnings growth rate of 25.2% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 39.2% in the past six months.
ATSG carries a Zacks Rank #2 at present and has an expected earnings growth rate of 12% for the current year.
The company has a mixed track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 7.7%. Shares of ATSG have climbed 18.9% in the past six months.
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Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
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