Analyst Valuation and EPS Growth for Wabtec (NYSE:WAB)

Earnings results for Wabtec (NYSE:WAB)

Westinghouse Air Brake Technologies Corporation is expected* to report earnings on 10/29/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.9. The reported EPS for the same quarter last year was $1.03.

Wabtec last released its earnings data on July 28th, 2020. The transportation company reported $0.87 EPS for the quarter, beating the consensus estimate of $0.75 by $0.12. The company had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.70 billion. Its revenue for the quarter was down 24.0% on a year-over-year basis. Wabtec has generated $4.17 earnings per share over the last year and currently has a price-to-earnings ratio of 25.2. Wabtec has confirmed that its next quarterly earnings report will be published on Thursday, October 29th, 2020.

Analyst Opinion on Wabtec (NYSE:WAB)

10 Wall Street analysts have issued ratings and price targets for Wabtec in the last 12 months. Their average twelve-month price target is $75.88, predicting that the stock has a possible upside of 35.08%. The high price target for WAB is $92.00 and the low price target for WAB is $65.00. There are currently 1 sell rating, 2 hold ratings and 7 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Wabtec has received a consensus rating of Buy. The company’s average rating score is 2.60, and is based on 7 buy ratings, 2 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $75.88, Wabtec has a forecasted upside of 35.1% from its current price of $56.17. Wabtec has only been the subject of 2 research reports in the past 90 days.

Dividend Strength: Wabtec (NYSE:WAB)

Wabtec has a dividend yield of 0.82%, which is in the bottom 25% of all stocks that pay dividends. Wabtec has only been increasing its dividend for 1 years. The dividend payout ratio of Wabtec is 11.51%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Wabtec will have a dividend payout ratio of 10.96% next year. This indicates that Wabtec will be able to sustain or increase its dividend.

Insiders buying/selling: Wabtec (NYSE:WAB)

In the past three months, Wabtec insiders have sold 1,086.98% more of their company’s stock than they have bought. Specifically, they have bought $309,650.00 in company stock and sold $3,675,496.00 in company stock. Only 5.35% of the stock of Wabtec is held by insiders. 88.10% of the stock of Wabtec is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Wabtec (NYSE:WAB

Earnings for Wabtec are expected to grow by 15.87% in the coming year, from $3.78 to $4.38 per share. The P/E ratio of Wabtec is 25.19, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.65. The P/E ratio of Wabtec is 25.19, which means that it is trading at a more expensive P/E ratio than the Transportation sector average P/E ratio of about 17.33. Wabtec has a PEG Ratio of 5.61. PEG Ratios above 1 indicate that a company could be overvalued. Wabtec has a P/B Ratio of 1.08. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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