Westinghouse Air Brake Technologies: A Leader in Railroad Innovation

Market Presence and Stock Performance

Westinghouse Air Brake Technologies Corporation (WAB) stands out as a significant player in the railroad industry. With a market capitalization of $34.7 billion, it provides locomotives, technology-based equipment, systems, and services to the global freight rail and passenger transit markets. This substantial market cap classifies WAB among “large-cap stocks,” indicating its noteworthy influence and dominance.

Stock Trends and Comparisons

Currently, WAB’s stock is near its 52-week high of $207.51, reached on December 9. In the last three months, it has achieved a 13.8% gain, slightly behind the Nasdaq Composite’s increase of 14.1% during the same period. However, over the longer term, WAB has shown remarkable growth—up 56.2% year-to-date and soaring 62.3% over the past year, outpacing the Nasdaq’s year-to-date growth of 34% and annual returns of 35.7%.

The stock has traded above its 200-day moving average for the past year, and it has been above its 50-day moving average since early September, indicating a sustained bullish trend.

Recent Earnings Report

On October 23, WAB reported its third-quarter earnings, during which its shares fell by 1.3%. The company reported an adjusted earnings per share (EPS) of $2, surpassing analysts’ expectations, and its revenue reached $2.7 billion, exceeding market projections as well. WAB projects full-year earnings to be between $7.45 and $7.65 per share, with revenues expected between $10.25 billion and $10.55 billion.

Industry Comparisons

In the competitive landscape of railroad stocks, Union Pacific Corporation (UNP) has faced challenges relative to WAB, with a year-to-date decline of 6.4% and a 5% drop over the past year.

Analyst Outlook

Wall Street analysts maintain a positive outlook for WAB. The stock carries a consensus “Moderate Buy” rating from twelve analysts and has a mean price target of $218.44, suggesting a potential upside of 10.2% from its current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.