Westinghouse Air Brake Technologies Corporation, operating as
Wabtec Corporation ( WAB Quick Quote WAB - Free Report) ), topline , is benefiting from strength across its Freight segment.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes WAB an Attractive Pick? An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of WAB have gained 8.3% so far this year compared with the 7.4% rise of the industry it belongs to. Image Source: Zacks Investment Research Solid Zacks Rank: WAB has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. Positive Earnings Surprise History: WAB has an impressive earnings surprise history. The company delivered an earnings surprise of 3.42% in the last four quarters, on average. Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2023, WAB’s earnings are expected to grow 19.67% year over year. For 2023 and 2024, WAB’s earnings are expected to grow 16.87% and 11.12%, year over year, respectively. Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for WAB’s third-quarter 2023 earnings has moved up 7.4% year over year. Over the past 90 days, the Zacks Consensus Estimate for WAB’s 2023 and 2024 earnings has moved up 4.9% and 5.3%, year over year, respectively. Growth Factors:Wabtec’s top-line performance (up 17.5% year over year in second-quarter 2023) continues to benefit from solid growth across its Freight segment revenues (up 14.6% year over year). Segmental growth was backed by strength across all product lines, with solid growth in Equipment, Digital Electronics and Services. For 2023, Wabtec now expects sales in the $9.25-$9.50 billion range (prior view: $8.7-$9 billion). For 2023, Wabtec anticipates strong cash flow generation with operating cash flow conversion exceeding 90%. Other Stocks to Consider
Some other top-ranked stocks from the Zacks
Transportation sector are GATX Corporation ( GATX Quick Quote GATX - Free Report) and SkyWest, Inc. ( SKYW Quick Quote SKYW - Free Report) . Each of these companies presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 17.30%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 6% year to date.
SkyWest's fleet-modernization efforts are commendable.A fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a decline in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 163.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.