Is Westinghouse Air Brake Technologies Outperforming the Dow?

2 min read

With a market cap of $31.7 billion, Westinghouse Air Brake Technologies Corporation WAB is a global provider of value-added, technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries as well as the mining, marine, and industrial markets. Headquartered in Pittsburgh, Pennsylvania, the company operates through two segments: Freight and Transit.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Wabtec fits this criterion perfectly. The company also offers various services, such as freight locomotive overhauls, modernizations, and refurbishment, along with positive train control equipment, freight car trucks, braking equipment, and related components.

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The American company dipped 11.9% from its 52-week high of $210.88. Over the past three months, WAB has dropped 2.1%, lagging behind the broader Dow Jones Industrials Average's ($DOWI) marginal decrease.

In the long term, Wabtec slipped 2.1% on a YTD basis, compared to the DOWI’s 1.4% decline. However, over the past 52 weeks, Wabtec shares have climbed 30.6%, exceeding the Dow Jones, which has improved nearly 7.3%.

Despite recent fluctuations, WAB has been trading above its 50-day and 200-day moving averages since last year.

Shares of WAB dipped 9.1% on Feb. 12 as the company posted net sales of $2.6 billion and adjusted EPS of $1.68, missing Wall Street expectations. While the Transit segment’s net sales grew 7.1% year-over-year to $789 million due to strong aftermarket and original equipment sales, its Freight segment’s sales were nearly flat. Additionally, for fiscal 2025, Wabtec expects revenues to be in the range of $10.7 billion - $11 billion.

Nevertheless, compared to WAB, rival Trinity Industries, Inc. (TRN) has underperformed. Shares of TRN have gained 13.2% in the last 52 weeks but saw a decline of 15.9% on a YTD basis.

Despite WAB’s outperformance relative to the broader market over the past year, analysts are cautiously optimistic about its prospects. WAB has a consensus "Moderate Buy" rating from nine analysts, and, as of writing, it is trading below the mean price target of $217.67.

On the date of publication, Sohini Mondal 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 Policyhere.

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