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Solid Cash Balance Boosts Wabtec (WAB) Amid High Capex
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We have recently updated a report on Westinghouse Air Brake Technologies Corporation (WAB - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for Wabtec is pegged at 12.6%. Wabtec has an earnings surprise of 1.5%, on average, beating estimates in three of the last four quarters. The stock has gained 26% in the past year compared with a 37.8% rally of the industry.
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WAB exited third-quarter 2021 with cash and equivalents of $456 million, significantly above the current debt of $4 million. This indicates that the company has enough cash to meet its current debt obligations. Additionally, its current ratio (a measure of liquidity) at the end of the September quarter stood at 1.34, higher than the reading of 1.20 at 2020-end.
Wabtec’s cost-cutting measures are impressive. While releasing third-quarter 2021 results, management stated that the company achieved the $250-million run-rate savings a year earlier than predicted on the back of its cost-cutting measures.
WAB anticipates CAPEX, which was $78.5 million in the first nine months of 2021, to be around $120 million in 2021 despite the woes. High capital expenses might hurt the company’s already weak bottom line, which declined 10% year over year in 2020.
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. While the Dedicated Contract Services (DCS) unit is being driven by fleet productivity improvement and a rise in average revenue-producing trucks, the Integrated Capacity Solutions (ICS) unit is gaining from favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward shareholders are encouraging. Driven by the tailwinds, the stock has increased 50.4% in the past year. J.B. Hunt currently carries a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.
LSTR’s top and the bottom line increased substantially in each quarter from third-quarter 2020, owing to robust revenues in the primary segment — truck transportation. LSTR has surged 32.4% in the past year. Landstar carries a Zacks Rank #2 presently.
The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.
CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved up 14.1% in the past year. C.H. Robinson currently carries a Zacks Rank #2.
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Solid Cash Balance Boosts Wabtec (WAB) Amid High Capex
We have recently updated a report on Westinghouse Air Brake Technologies Corporation (WAB - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for Wabtec is pegged at 12.6%. Wabtec has an earnings surprise of 1.5%, on average, beating estimates in three of the last four quarters. The stock has gained 26% in the past year compared with a 37.8% rally of the industry.
WAB exited third-quarter 2021 with cash and equivalents of $456 million, significantly above the current debt of $4 million. This indicates that the company has enough cash to meet its current debt obligations. Additionally, its current ratio (a measure of liquidity) at the end of the September quarter stood at 1.34, higher than the reading of 1.20 at 2020-end.
Wabtec’s cost-cutting measures are impressive. While releasing third-quarter 2021 results, management stated that the company achieved the $250-million run-rate savings a year earlier than predicted on the back of its cost-cutting measures.
WAB anticipates CAPEX, which was $78.5 million in the first nine months of 2021, to be around $120 million in 2021 despite the woes. High capital expenses might hurt the company’s already weak bottom line, which declined 10% year over year in 2020.
Zacks Rank & Stocks to Consider
Wabtec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks in the broader Zacks Transportation sector are J.B. Hunt Transport Services, Inc. (JBHT - Free Report) , Landstar System, Inc. (LSTR - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. While the Dedicated Contract Services (DCS) unit is being driven by fleet productivity improvement and a rise in average revenue-producing trucks, the Integrated Capacity Solutions (ICS) unit is gaining from favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward shareholders are encouraging. Driven by the tailwinds, the stock has increased 50.4% in the past year. J.B. Hunt currently carries a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.
LSTR’s top and the bottom line increased substantially in each quarter from third-quarter 2020, owing to robust revenues in the primary segment — truck transportation. LSTR has surged 32.4% in the past year. Landstar carries a Zacks Rank #2 presently.
The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.
CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved up 14.1% in the past year. C.H. Robinson currently carries a Zacks Rank #2.