Wabtec Corporation (WAB), formerly known as Westinghouse Air Brake Technologies Corporation, is a leading provider of transportation equipment and services. The company’s strong segmental performance has significantly boosted its top line, making it an attractive investment opportunity. Wabtec’s share price has surged 66.8% over the past year, outperforming the industry average of 47.2%. This impressive performance is a testament to the company’s strong fundamentals and positive outlook.
Wabtec’s robust growth is driven by its Freight and Transit segments. The Freight segment benefits from growth in services and components, while the Transit segment is seeing strong aftermarket and original equipment manufacturing sales. This growth is further supported by Wabtec’s commitment to rewarding shareholders through dividends. In the second quarter of 2024, the company paid out a dividend of 20 cents per share.
Analysts are bullish on Wabtec’s future prospects. The Zacks Consensus Estimate for earnings per share has been revised upward for both the current quarter and the current year. This indicates a high level of confidence in the company’s future performance. Furthermore, Wabtec has a solid Zacks Rank of #2 (Buy), highlighting its strong fundamentals and growth potential. The company’s earnings have consistently outpaced analysts’ expectations, demonstrating its ability to deliver strong financial results.
Wabtec operates within a favorable industry, with a Zacks Industry Rank of 63 (out of 251). This places the company in the top 25% of Zacks industries, indicating a strong sector outlook.
Wabtec’s positive outlook is reflected in its updated guidance. The company has raised its 2024 adjusted EPS forecast to a range of $7.20-$7.50, indicating strong confidence in its ability to achieve these targets.
For investors interested in the Transportation sector, other companies to consider include C.H. Robinson Worldwide (CHRW) and Air Transport Service Group (ATSG). CHRW has a strong Zacks Rank of #1 (Strong Buy) and a promising growth outlook, with an expected earnings growth rate of 25.2% for the current year. ATSG also has a favorable Zacks Rank of #2 and an expected earnings growth rate of 12% for the current year.
Wabtec’s strong performance, positive outlook, and commitment to shareholder value make it a compelling investment opportunity for those looking to capitalize on the transportation sector’s growth.
