STOCK PICKS: Top 5 Mid-Caps for Oct. 2
Looking ahead, the company announced that it expects to reach or possibly surpass its previously announced fiscal 2008 earnings guidance of $1.17 to $1.23 per diluted share. Management cautioned that the company will require a strong second half contribution from the thermal desorption recycling service that was initiated in late June, along with solid even business results if it is to exceed its guidance range.
Westinghouse Air Brake Technologies (WAB) provides value-added, technology-based equipment and services for the global rail industry. Wabtec's highly engineered products, which are intended to enhance safety, improve productivity and reduce maintenance costs for customers, can be found on virtually all U.S. locomotives, freight cars and subway cars.
Wabtec has been rated a buy since March 2005. The company's strengths can be seen in a variety of areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. For the second quarter of fiscal 2008, the company's revenue increased 19.8% year over year. This growth contributed to 21.1% improvement in earnings per share (EPS), which rose from 57 cents a year ago to 69 cents in the most-recent quarter. Net income also increased, rising 20.0% when compared with the same quarter last year. In addition, net operating cash flow increased 757.52% to $64.07 million.
Wabtec's management credited international and aftermarket expansion with helping to drive growth for the company's second quarter. While the company is currently trading at a premium to its peers, we feel that its strengths justify the current valuation.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV