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Here's Why Investors Should Bet on Wabtec Stock Right Now

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Key Takeaways

  • Wabtec's 12-month backlog rose 8.4% to $643M, while the $3.34B multi-year backlog boosts visibility.
  • Wabtec returned a record $1.2B to shareholders in 2024 and approved a 25% dividend hike to $0.25.
  • WAB shares jumped 8.4% in 90 days, beating the industry's return of 6%.

Westinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec, has seen its top line bolstered by robust backlog growth. This, in turn, has boosted the company’s overall performance. Shareholder-friendly initiatives are also encouraging, contributing to the company’s prospects. Due to these tailwinds, WAB shares have performed impressively on the bourses. If you have not taken advantage of its share price increase yet, it is time to do so.

Let us delve deeper.

Factors Favoring WAB Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share (EPS) has been revised 0.5% upward over the past 60 days for the current quarter. For 2025, the consensus mark for EPS has moved 0.45% north in the same period. These favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have jumped 8.4% over the past 90 days, surpassing the Zacks Transportation - Equipment and Leasing industry’s 6% rise.

 

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Image Source: Zacks Investment Research

 

Positive Earnings Surprise History: Wabtec has a mixed earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, missed in the remaining one, delivering an average surprise of 4.68%.

Solid Zacks Rank: WAB currently carries a Zacks Rank #2 (Buy).

Earnings Surprise History: WAB has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters, and missing once, delivering an average surprise of 4.68%.

Bullish Industry Rank: The industry to which Wabtec belongs currently has a Zacks Industry Rank of 71 (out of 243). Such a favorable rank places it in the top 29% of Zacks Industries. Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group to which it belongs.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative in this context.

Growth Factors: Wabtec’s top-line momentum continues to strengthen, supported by a growing backlog that points to a favorable outlook. The company’s 12-month backlog increased 8.4% year over year to $643 million at the end of the third quarter of 2025, signaling solid near-term demand and improved revenue visibility. Meanwhile, its multi-year backlog stood at $3.34 billion, reinforcing a robust long-term growth pipeline. By expanding both short and long-term backlog, Wabtec is enhancing revenue stability and positioning itself for sustained growth.

Wabtec also maintains a strong focus on shareholder returns through consistent dividends and share repurchases. The company returned $92 million in dividends and $300 million in buybacks in 2021, rising to $111 million and $473 million in 2022, and $123 million and $409 million in 2023, respectively. This momentum accelerated in 2024, when Wabtec delivered a record $1.2 billion to shareholders. Further underscoring its shareholder-friendly approach, the company approved a 25% dividend increase in the fourth quarter of 2024, lifting the dividend to $0.25 per share effective Mar. 7, 2025. Wabtec also paid out $43 million in dividends in the third quarter of 2025.

Other Top-Ranked Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider Expeditors International of Washington (EXPD - Free Report) and Global Ship Lease (GSL - Free Report) .

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 3.50% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average beat of 13.9%.

Global Ship Lease currently carries a Zacks Rank #2.

GSL has an expected earnings growth rate of 2.60% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in the trailing four quarters, delivering an average beat of 16.8%.


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Expeditors International of Washington, Inc. (EXPD) - free report >>

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