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Here’s Why You Should Add Wabtec (WAB) to Your Portfolio

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Here’s Why You Should Add Wabtec (WAB) to Your Portfolio

Wabtec Corporation (WAB), also known as Westinghouse Air Brake Technologies Corporation, is experiencing growth in its Freight segment and emerging as a top player in the industry. Here are the key reasons why Wabtec should be on your investment radar:

1. Impressive Performance

WAB’s stock has shown an impressive upward trend, outperforming the industry with a gain of 8.3% year-to-date. This indicates its strength and potential for further growth.

2. Solid Investment Proposition

With a Zacks Rank #2 (Buy), WAB is considered a strong investment opportunity. Studies have shown that stocks ranked #1 (Strong Buy) or 2 tend to perform well.

Earnings Surprise History: WAB has consistently delivered positive earnings surprises, with an average surprise of 3.42% over the last four quarters.

Earnings Expectations: Analysts predict WAB’s earnings to grow by 19.67% in the third quarter of 2023, and by 16.87% and 11.12% in 2023 and 2024, respectively. This indicates the company’s positive outlook for the future.

3. Positive Estimate Revisions

The consensus estimate for WAB’s earnings has been revised upwards in the past 90 days, reflecting positive sentiment towards the stock. This suggests further potential for price appreciation.

4. Strong Growth Factors

Wabtec’s solid growth across its Freight segment is driving its overall performance. Revenues in this segment have increased by 14.6% year over year, driven by growth in Equipment, Digital Electronics, and Services. Wabtec’s sales for 2023 are expected to be in the range of $9.25-$9.50 billion, indicating robust growth.

Other Stocks to Consider

If you’re looking for additional investment opportunities in the transportation sector, consider GATX Corporation (GATX) and SkyWest, Inc. (SKYW). Both stocks are highly ranked and have exhibited strong growth potential.

GATX has an expected earnings growth rate of 14.33% for the current year, with a trailing four-quarter earnings surprise of 17.30% on average.

SkyWest has seen a significant surge in its stock price, gaining 163.6% year-to-date. The company’s fleet-modernization efforts and a decline in operating expenses have contributed to its success.

For more investment insights, download the free report “7 Best Stocks for the Next 30 Days” by Zacks Investment Research.

Investing involves risks, and it’s important to conduct thorough research and consult with a financial advisor before making any investment decisions.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official position of Nasdaq, Inc.