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Headquartered in Pittsburgh, Pennsylvania, Westinghouse Air Brake Technologies Corporation (WAB), known as Wabtec, is a global leader in transportation solutions with a market cap of $29.14 billion. Specializing in advanced technologies and services for the rail and transit industries, Wabtec is pivotal in enhancing transportation systems' safety, efficiency, and sustainability worldwide.
Shares of WAB have outperformed the broader market considerably over the past year. WAB has gained 47.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. Also, in 2024, the stock is up 30.2%, compared to the SPX’s 17.8% rise on a YTD basis.
Narrowing the focus, WAB's outperformance looks more pronounced when measured against the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained 13.3% on a YTD basis.
On Jul. 24, WAB shares declined by 6% after reporting Q2 results. The company reported revenue of $2.64 billion, which exceeded Wall Street forecasts of $2.63 billion. Its adjusted EPS of $1.96 beat the consensus estimates of $1.85. WAB expects full-year earnings between $7.20 and $7.50 per share, with revenue between $10.25 billion and $10.55 billion.
For the current fiscal year, ending in December, analysts expect WAB’s EPS to grow 26% year over year to $7.46 on a diluted basis. The company's earnings surprise history is mixed. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the eight analysts covering WAB stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and two “Holds.”
On Jul. 30, Angel Castillo from Morgan Stanley maintained a “Buy” rating on Westinghouse Air Brake Technologies, with a price target of $177, which indicates a 7.1% upside from the current levels.
The mean price target of $184.11 represents an 11.4% premium compared to WAB’s current price levels. The Street-high price target of $231 suggests an upside potential of 39.8%.
On the date of publication, Rashmi Kumari 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.
