Wabtec (WAB) Touches 52-Week High: What's Driving the Stock?
Shares of Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB), scaled a 52-week high of $120.32 in the trading session on Dec 1, 2023, before closing a tad lower at $120.12.
The company’s shares gained 20.4% so far this year compared with the 14.4% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s find out the factors supporting the uptick.
Wabtec’s bullish guidance for 2023 looks encouraging and raises optimism about this stock. For 2023, WAB now expects sales of $9.50-$9.70 billion (prior view: $9.25-$9.50 billion). Adjusted earnings per share are now estimated to be between $5.80 and $6.00 (prior view: $5.50 and $5.80). Management still anticipates strong cash flow generation, with operating cash flow conversion exceeding 90%.
Further, Wabtec’s measures to reward its shareholders through dividends and share buybacks are also appreciative. WAB repurchased shares worth $252 million and paid $92 million in the form of dividend payments during the first nine months of 2023. WAB pays out a quarterly dividend of 17 cents ($0.68 annualized) per share, which gives it a 0.57% yield at the current stock price. This company’s payout ratio is 12%, with a five-year dividend growth rate of 8.36%. (Check WAB’s dividend history here).
The positive sentiment surrounding the stock is evident from the fact that the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.6% over the past 60 days. Further, WAB has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the past four quarters (met the same in the remaining quarter). The average beat is 7.11%. Wabtec has an expected earnings growth rate of 22.02% for the current year.
Zacks Rank and Other Stocks to Consider
Currently, Wabtec carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Transportation sector are FedEX (FDX) and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FedEX has an expected earnings growth rate of 21.46% for the current year. FDX delivered a trailing four-quarter earnings surprise of 16.94%, on average.
The Zacks Consensus Estimate for FDX’s current-year earnings has improved 5% over the past 90 days. Shares of FDX have gained 52.7% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 31.5% over the past 90 days. Shares of SKYW have surged 191.9% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
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Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
