Back to top

Image: Bigstock

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

Read MoreHide Full Article

Key Takeaways

  • WAB's 12-month backlog rose 12.8% to $1.05B in Q1 2026, supporting revenue visibility.
  • Wabtec returned a record $1.2B to shareholders in 2024 and raised its dividend 25%.
  • WAB beat earnings estimates in each of the past four quarters, averaging a 3.97% surprise.

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

Let’s delve deeper.

Factors Favoring WAB Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share (EPS) has been revised upward by 1.9% over the past 60 days for the current year. For 2027, the consensus mark for EPS has moved 3.5% north over the same time frame. The 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 gained 28.6% over the past year, surpassing the  Zacks Transportation - Equipment and Leasing industry’s 12.5% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Positive Earnings Surprise History: Wabtec has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 3.97%.

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

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 12.8% year over year to $1.05 billion at the end of the first quarter of 2026, signaling solid near-term demand and improving revenue visibility. Meanwhile, its multi-year backlog stood at $8.50 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 $111 million in dividends and $473 million in buybacks in 2022, followed by $123 million and $409 million, respectively, in 2023. This momentum accelerated in 2024, when Wabtec delivered a record $1.2 billion to shareholders and approved a 25% dividend hike at the end of the year. In the first quarter of 2026, the company repurchased $242 million of Wabtec shares and paid $53 million in dividends.

Solid liquidity is another tailwind for the company, as WAB ended the first quarter of 2026 with a current ratio (a measure of liquidity) of 1.02. A current ratio of greater than one is always recommended, as it indicates that the company has sufficient cash to meet its short-term obligations.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and International Seaways (INSW - 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.

Expeditors has an expected earnings growth rate of 11.9% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.

INSW currently sports a Zacks Rank #1.

INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in