Westinghouse Air Brake Technologies Stock: Is WAB Outperforming the Industrial Sector?

Pittsburgh, Pennsylvania-based Westinghouse Air Brake Technologies Corporation (WAB) provides technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries. Valued at a market cap of $34.9 billion, the company engineers, manufactures, and services critical components such as braking systems, traction motors, positive train control systems, and digital solutions, playing a vital role in modernizing global rail infrastructure.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and WAB fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the railroads industry. The company’s strengths lie in its long-standing reputation for innovation, safety, and reliability within the industry. It specializes in cutting-edge rail technologies, including positive train control (PTC), energy-efficient traction systems, and digital rail solutions that enhance automation, fuel efficiency, and safety. 

This railroads company is currently trading 3.3% below its 52-week high of $210.88, reached on Jan. 30. WAB has rallied 15.8% over the past three months, outpacing the Industrial Select Sector SPDR Fund’s (XLI) 10.6% uptick during the same time frame.

Moreover, in the longer term, WAB has surged 23.4% over the past 52 weeks, outperforming XLI’s 16.8% return over the same time frame. However, on a YTD basis, shares of WAB are up 7.5%, lagging behind XLI’s 9.2% rise. 

To confirm its bullish trend, WAB has been trading above its 200-day moving average over the past year, with some fluctuations, and has remained above its 50-day moving average since late April. 

Shares of WAB closed up 5.9% following its better-than-expected Q1 earnings release on Apr. 23. The company’s revenue improved 4.5% year-over-year to $2.6 billion due to higher net sales across both its reportable segments and marginally topped the consensus estimates. Meanwhile, its adjusted operating margin expanded by 190 basis points and led to a 14.1% year-over-year growth in its adjusted operating income. Additionally, its adjusted EPS came in at $2.28, up 20.6% from the year-ago quarter and 13.4% above Wall Street expectations.

WAB has considerably outpaced its rival, Trinity Industries, Inc. (TRN), which declined 9.6% over the past 52 weeks and 24.8% on a YTD basis. 

Looking at WAB’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 11 analysts covering it, and the mean price target of $214.64 suggests a 5.3% premium to its current price levels.