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Here's Why Investors Should Invest in Wabtec (WAB) Stock Now
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Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) ), continues to benefit from its consistent shareholder-friendly initiatives as well as strength across its Freight and Transit segments.
Bullish 2024 guidance looks encouraging and raises optimism about the stock.
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 32.3% so far this, outperforming the industry’s surge of 22.1% and the S&P 500 Index’s northward movement of 9.7%.
Image Source: Zacks Investment Research
Solid Zacks Rank: WAB sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for 2024 earnings has been revised 5.8% upward over the past 90 days.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For second-quarter 2024, WAB’s earnings are expected to grow 28.37% year over year. For 2024, WAB’s earnings are expected to grow 19.76% year over year.
Positive Earnings Surprise History: Wabtec has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the past four quarters (matched the mark in the remaining one). The average beat is 11.46%.
Growth Factors:Wabtec’s top line is benefiting from higher sales across its Freight and Transit segments. While the Freight segment benefits from growth in services and components, the transit segment gains from strong aftermarket and original equipment manufacturing sales.
WAB is expected to continue its strong performance due to strong underlying demand and a robust backlog. Driven by this encouraging backdrop, management raised its current-year revenues and earnings per share (EPS) guidance. Wabtec now expects sales in the $10.25-$10.55 billion band (prior view: $10.05-$10.35 billion). Adjusted EPS is now estimated to be between $7.00 and $7.40 (prior view: $6.50-$6.90).
GATX has an encouraging earnings surprise history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the other). The average beat is 7.49%.
The Zacks Consensus Estimate for 2024 earnings has been revised 3% upward over the past 90 days. GATX has an expected earnings growth rate of 6.79% for 2024. Shares of the company have risen 18.4% in the past year.
Trinity raised 2024 EPS guidance to the range of $1.35 to $1.55 (which excludes items outside of the company’s core business operations) from $1.30 to $1.50 guided previously.
Over the past 30 days, the Zacks Consensus Estimate for TRN’s 2024 earnings has been revised 2.7% upward. For 2024, TRN’s earnings are expected to grow 8.70% year over year.
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Here's Why Investors Should Invest in Wabtec (WAB) Stock Now
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) ), continues to benefit from its consistent shareholder-friendly initiatives as well as strength across its Freight and Transit segments.
Bullish 2024 guidance looks encouraging and raises optimism about the stock.
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 32.3% so far this, outperforming the industry’s surge of 22.1% and the S&P 500 Index’s northward movement of 9.7%.
Image Source: Zacks Investment Research
Solid Zacks Rank: WAB sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for 2024 earnings has been revised 5.8% upward over the past 90 days.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For second-quarter 2024, WAB’s earnings are expected to grow 28.37% year over year. For 2024, WAB’s earnings are expected to grow 19.76% year over year.
Positive Earnings Surprise History: Wabtec has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the past four quarters (matched the mark in the remaining one). The average beat is 11.46%.
Growth Factors:Wabtec’s top line is benefiting from higher sales across its Freight and Transit segments. While the Freight segment benefits from growth in services and components, the transit segment gains from strong aftermarket and original equipment manufacturing sales.
WAB is expected to continue its strong performance due to strong underlying demand and a robust backlog. Driven by this encouraging backdrop, management raised its current-year revenues and earnings per share (EPS) guidance. Wabtec now expects sales in the $10.25-$10.55 billion band (prior view: $10.05-$10.35 billion). Adjusted EPS is now estimated to be between $7.00 and $7.40 (prior view: $6.50-$6.90).
Other Stocks to Consider
Some other top-ranked stocks for investors’ consideration in the Zacks Transportation sector include GATX Corporation (GATX - Free Report) and Trinity Industries, Inc. (TRN - Free Report) . Each stock currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX has an encouraging earnings surprise history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the other). The average beat is 7.49%.
The Zacks Consensus Estimate for 2024 earnings has been revised 3% upward over the past 90 days. GATX has an expected earnings growth rate of 6.79% for 2024. Shares of the company have risen 18.4% in the past year.
Trinity raised 2024 EPS guidance to the range of $1.35 to $1.55 (which excludes items outside of the company’s core business operations) from $1.30 to $1.50 guided previously.
Over the past 30 days, the Zacks Consensus Estimate for TRN’s 2024 earnings has been revised 2.7% upward. For 2024, TRN’s earnings are expected to grow 8.70% year over year.