Wabtec Sales Lifting Stock Higher

WAB provides locomotives, equipment, systems, and services for the freight rail and passenger transit industries. The company offers locomotives powered by diesel-electric, battery, and liquid natural gas, as well as engines, electric motors, propulsion systems, marine products, and mining products to customers around the world.

Analysts expect third- and fourth-quarter revenues at $2.64 billion and $2.61 billion, which indicates an improvement of 3.6% and 3.2% from 2023, respectively. This caused WAB management to increase earnings guidance to $7.20-$7.50 per share and continue its healthy dividend program.

It’s no wonder WAB shares have gained 42% this year – and they could grow more. Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.

Big Money Loves Wabtec Shares

Institutional volumes reveal plenty. In the last year, WAB has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.

Each of the green bars signal unusually large volumes in WAB shares, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Wabtec.

Wabtec Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, WAB’s strong sales and EPS growth has delivered the goods:

• 1-year sales growth rate (+15.7%)
• 3-year EPS growth rate (+28.2%)

Source: FactSet

The one-year EPS outlook is estimated to increase by +12.6%.

Now it makes sense why the stock has been powering to new heights. WAB is gaining due to its strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

WAB has been a top-rated stock at MAPsignals for a long time. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report numerous times over the last four years. The blue bars below show when WAB was a top pick…driving prices higher.

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.

Wabtec Price Prediction

The WAB rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in WAB at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.