Wabtec’s Strong Performance and Strategic Moves Highlight Growth Potential
Westinghouse Air Brake Technologies Corporation (WAB), commonly known as Wabtec, excels in transportation solutions and boasts a market cap of $34.2 billion. The company, based in Pittsburgh, Pennsylvania, focuses on advanced technologies and services tailored for the rail and transit sectors.
Stock Performance Shows Significant Gains
Over the past year, WAB’s stock has outperformed the broader market remarkably. The shares have surged by 72.3%, in contrast to the S&P 500 Index ($SPX), which has increased by 32.1%. Looking at the year-to-date figures for 2024, WAB has risen 59%, while the SPX has climbed 26.2%.
Outpacing Industry Comparisons
Further analysis shows WAB has also surpassed the Industrial Select Sector SPDR Fund (XLI), which has gained 35.1% over the past year and 26.1% year-to-date.
Strategic Acquisitions Fuel Growth
Adding to its impressive growth, WAB is expanding its Transit business through strategic acquisitions. The company has acquired Fanox and Kompozitum for $110 million in cash, using its cash reserves and a revolving credit facility. These moves are set to enhance the company’s earnings and broaden its product offerings and customer base.
Recent Earnings Report Highlights Resilience
On October 23, WAB announced its third-quarter earnings report, causing shares to dip by 1.3%. The adjusted earnings per share (EPS) of $2 exceeded analysts’ estimates, and revenue reached $2.7 billion, also surpassing market expectations. For the full year, WAB anticipates earnings between $7.45 and $7.65 per share, with revenue predicted to range from $10.25 billion to $10.55 billion.
Positive Analyst Expectations
For the current fiscal year ending in December, analysts forecast an impressive 28.6% year-over-year growth in WAB’s EPS, reaching $7.61 on a diluted basis. However, the company’s history with earnings surprises has shown mixed results, missing the consensus estimate in three of the last four quarters while exceeding forecasts once.
Among the nine analysts covering WAB stock, the consensus rating is a “Moderate Buy,” with five analysts recommending a “Strong Buy,” one a “Moderate Buy,” and three advising “Hold.”
Analyst Ratings Suggest Continued Growth
This consensus has remained fairly stable in recent months. On November 13, KeyBanc analyst Steve Barger reiterated his “Buy” rating for Wabtec, maintaining a price target of $220. The average price target of $214.56 indicates a 6.4% premium over WAB’s current price, while the highest target of $231 suggests an upside potential of 14.5%.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information and data provided are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
