Stock of the Day

June 1, 2020

Westinghouse Air Brake Technologies (WAB)

$184.40
-$7.71 (-4.0%)
Market Cap: $32.82B

About Westinghouse Air Brake Technologies

Westinghouse Air Brake Technologies Corporation, together with its subsidiaries, provides technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It offers diesel-electric, battery, and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products. The company also offers positive train control equipment; pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, train cruise controls, and train remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers; heat transfer components and systems; track and switch products; new commuter and switcher locomotives; and turbochargers. Further, the company offers freight locomotive overhauls, modernizations, and refurbishment services; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; and maintenance of way equipment and services. Additionally, it provides railway and freight braking equipment and related components; friction products, such as brake shoes, discs, and pads; heating, ventilation, and air conditioning equipment; access and platform screen doors; pantographs; auxiliary power converter and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

Westinghouse Air Brake Technologies Bull Case

Here are some ways that investors could benefit from investing in Westinghouse Air Brake Technologies Co.:

  • Recent upgrades from multiple analysts, including a price target increase to $220.00, indicate strong market confidence in the company's growth potential.
  • The stock is currently priced at $188.14, which is below the consensus target price of $206.33, suggesting potential for price appreciation.
  • Westinghouse Air Brake Technologies Co. has a solid market capitalization of $32.34 billion, reflecting its stability and presence in the transportation sector.
  • The company recently increased its quarterly dividend from $0.20 to $0.25, demonstrating a commitment to returning value to shareholders.
  • With a return on equity of 12.52% and a net margin of 10.25%, the company shows strong profitability metrics, which can be attractive to investors seeking reliable returns.

Westinghouse Air Brake Technologies Bear Case

Investors should be bearish about investing in Westinghouse Air Brake Technologies Co. for these reasons:

  • The company reported an EPS of $1.68, which was below the consensus estimate of $1.74, indicating potential challenges in meeting earnings expectations.
  • Despite a strong market position, the stock has a relatively high PE ratio of 31.36, which may suggest that it is overvalued compared to its earnings.
  • The quick ratio of 0.65 indicates that the company may have liquidity concerns, as it suggests that current assets may not be sufficient to cover current liabilities.
  • With a beta of 1.27, the stock is more volatile than the market, which could lead to higher risk for investors during market fluctuations.
  • Three analysts have rated the stock with a hold rating, which may indicate a lack of strong bullish sentiment among some market participants.

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