Trade-Ideas LLC identified

Westinghouse Air Brake Technologies

(

WAB

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Westinghouse Air Brake Technologies as such a stock due to the following factors:

  • WAB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.0 million.
  • WAB has traded 136,077 shares today.
  • WAB is trading at 4.30 times the normal volume for the stock at this time of day.
  • WAB is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on WAB:

Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, provides technology-based equipment and services for the freight rail and passenger transit industries worldwide. It operates in two segments, Freight and Transit. The stock currently has a dividend yield of 0.6%. WAB has a PE ratio of 17. Currently there are 6 analysts that rate Westinghouse Air Brake Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Westinghouse Air Brake Technologies has been 854,000 shares per day over the past 30 days. Westinghouse Air Brake has a market cap of $6.4 billion and is part of the services sector and transportation industry. The stock has a beta of 1.21 and a short float of 20.1% with 10.35 days to cover. Shares are down 6.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Westinghouse Air Brake Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, WAB has a quick ratio of 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Machinery industry and the overall market, WABTEC CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 73.07% to $75.57 million when compared to the same quarter last year. In addition, WABTEC CORP has also vastly surpassed the industry average cash flow growth rate of -8.63%.
  • WABTEC CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WABTEC CORP increased its bottom line by earning $4.10 versus $3.62 in the prior year. This year, the market expects an improvement in earnings ($4.35 versus $4.10).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.3%. Since the same quarter one year prior, revenues slightly dropped by 5.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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