New Lifetime High Reached: Westinghouse Air Brake Technologies (WAB)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Westinghouse Air Brake Technologies ( WAB) as a new lifetime high 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 $41.5 million.
  • WAB has traded 6,450 shares today.
  • WAB is trading at a new lifetime high.

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More details on WAB:

Bank Group (Agent, others): Equity Coverage: Products Currently Used: Product Ideas: Major Division: Key Products: Rating: The stock currently has a dividend yield of 0.2%. WAB has a PE ratio of 26.0. Currently there are 3 analysts that rate Westinghouse Air Brake Technologies a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Westinghouse Air Brake Technologies has been 623,700 shares per day over the past 30 days. Westinghouse Air Brake has a market cap of $7.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.45 and a short float of 1.7% with 3.03 days to cover. Shares are up 2.2% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 17.4%. Since the same quarter one year prior, revenues slightly increased by 7.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.36, 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 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
  • WABTEC CORP has improved earnings per share by 16.9% in the most recent quarter compared to the same quarter a year ago. 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 $2.60 versus $1.76 in the prior year. This year, the market expects an improvement in earnings ($3.04 versus $2.60).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income increased by 17.4% when compared to the same quarter one year prior, going from $62.99 million to $73.94 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 56.67% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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