Yahoo Finance Wabtec Riding Tailwinds to Big Gains
The locomotive and freight-focused firm is among many transportation stocks raising forward guidance. It’s expected to grow earnings by 21.1% and sales by 6.5 % in the current fiscal year. WAB also increased its dividend, announced share buybacks, and has a history of upside earnings surprises. All of this is music to Big Money’s ears.
So, it’s not surprising that WAB shares have gained 31% so far this year – and there could be even more room to grow!
Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.
Wabtec Shares Attracting Big Money, Big Volume
Institutional volumes reveal plenty. In the last year, WAB has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.
Each of the green bars signal unusually large volumes in WAB shares, pushing the stock higher:
Plenty of industrials names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Wabtec.
Wabtec Fundamental Analysis
Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, WAB strong sales and EPS growth has delivered the goods:
1-year sales growth rate (+15.7%)
3-year EPS growth rate (+28.2%)
Source: FactSet
The one-year EPS outlook is estimated to increase by +11.5%.
Now it makes sense why the stock has been powering to new heights. WAB is gaining due to its strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
WAB has been a top-rated stock at MAPsignals for a long time. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report numerous times over the years. The blue bars below show when WAB was a top pick…driving the price upward.
Tracking unusual volumes reveals the power of money flows.
This is a trait that most superstar stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.
Wabtec Price Prediction
The WAB rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in WAB at the time of publication.
If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.
This article was originally posted on FX Empire
