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WABCO (WBC) Signs Contract to Supply Steering System in India

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WABCO Holdings Inc. has signed a steering system deal in India with Tata Motors Limited , a global manufacturer of cars, utility vehicles, buses, trucks and defense vehicles. Per the deal, WABCO will supply its hydraulic power steering systems to meet Tata Motors’ performance and reliability requirements for manufacturing new heavy-duty trucks.

This marks the first major deal in India after WABCO acquired the U.S.-based supplier of steering technologies, R.H. Sheppard in September 2017. Further, the latest agreement is in sync with WABCO’s commitment to expand and offer its technology portfolio to customers outside the United States. The contract with Tata Motors corresponds to a significant milestone in providing steering solutions to global customers.

The company will supply M110 heavy-duty hydraulic power steering gears and assemblies, enabling Tata Motors to cater to the rising demand for new heavy-duty trucks after the changes in legislation to limit axle weight loads. Since 1986, WABCO’s M-Series gears have been meeting industry standards by using top-quality materials and components.

Wabco Holdings Inc. Price and Consensus

The company’s advanced driver assistance and braking systems, along with a leading steering capability, make it eligible to serve OEMs (original equipment manufacturers) across markets. Also, WABCO is the only commercial vehicle supplier, having the ability to offer both braking and steering capabilities in India, enabling it to provide customers with advanced levels of automation.

Price Performance

In the past three months, WABCO’s stock has lost 9.6%, underperforming 4.6% decline recorded by the industry it belongs to.

Zacks Rank & Stocks to Consider

Currently, WABCO has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) and Magna International Inc. (MGA - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have gained 7.6% over the past year.

Magna International has an expected long-term growth rate of 8.5%. Shares of the company have jumped 25.6% over the past year.

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