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Wabash National

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Wabash National (WNC - Free Report) is a Zacks #1 Rank (Strong Buy) due to higher earnings estimates and a solid beat in the most recent quarter.

Company Description

Wabash National Corporation engages in designing, manufacturing, and marketing standard and customized truck trailers, intermodal equipment and transportation related products. The Retail segment operates 12 retail branch locations, which sell new and used trailers, aftermarket parts, and services throughout the United States. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.

WNC Tops Expectations Three of Last Five Reports

WNC has beaten the Zacks Consensus Estimate in each of the last three of the last five quarters. One of the beats, in the December 2001 quarter saw the company post earnings of $0.03, $0.02 ahead of the Zacks Consensus Estimate of $0.01. The beat of 200% was not what Wall Street wanted, as the stock drifted lower by about one half of one percent following the report.

The September 2011 quarter saw a miss of $0.03 or roughly 60% but Wall Street focused in on the topline instead. Revenue came in at $336 million, $23 million ahead of the Zacks Consensus Estimate and 96% ahead of the year ago period of $171 million. The stock moved higher by more than 6% as a result of the topline beat.

WNC Recently Reported Earnings

On February 6, 2012 the company reported revenue of $16 million roughly $4 million more than the Zacks Consensus Estimate and double the $8 million reported in the year ago period. EPS of $0.12 was $0.08 ahead of the estimate or a 200% beat. As a result the stock moved higher by about 7%.

Earnings Estimates Bumped Up

Following the most recent earnings report, analysts bumped up their earnings estimates for 2012. The Zacks Consensus Estimate for 2012 EPS moved from $0.80 in January 2012 to the current level of $0.87.


WNC has a mixed valuation picture. Trailing twelve months PE of 39x is well above the industry average of 12x, but forward PE of 11x shows WNC trading at a discount to the industry average of 14x. Price to book or 4.5x for WNC is significantly higher than the 1.9x industry average, but price to book trades in line with the industry average.

The Chart

A quick look at the price and consensus chart shows that the analyst estimates for WNC are well above where the stock is trading. This is generally a sign of an undervalued stock. With growing revenue and higher earnings estimates, WNC is ready to break out. WNC is a Zacks #1 Rank (Strong Buy).

Wabash National - ticker WNC>

Brian Bolan is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Home Run Investor service

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