Westinghouse Air Brake Technologies (WAB) shares ended the last trading session 4.9% higher at $197.96. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.6% loss over the past four weeks.
The upside can be attributed to Wabtec's recently announced agreement with National Company Kazakhstan Temir Zholy (the national railway of Kazakhstan), aimed at providing Evolution Series locomotives and long-term service support.
This maker of parts for locomotives, subways and buses is expected to post quarterly earnings of $2.27 per share in its upcoming report, which represents a year-over-year change of +13.5%. Revenues are expected to be $2.9 billion, up 8.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Wabtec, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on WAB going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Wabtec belongs to the Zacks Transportation - Equipment and Leasing industry. Another stock from the same industry, Herc Holdings (HRI), closed the last trading session 4.5% higher at $124.42. Over the past month, HRI has returned -8.2%.
Herc Holdings' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.23. Compared to the company's year-ago EPS, this represents a change of -48.7%. Herc Holdings currently boasts a Zacks Rank of #3 (Hold).
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Wabtec (WAB) : Free Stock Analysis Report
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
