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WABWestinghouse Air Brake TechnoloHold5.8·$302.50+1.51%
HoldModerate Confidence
Investment thesis

Westinghouse Air Brake has beaten earnings estimates in all 4 of the last 4 quarters and holds a leading growth position within its industry peer group, though the stock has reached its analyst price target and the reward-to-risk ratio has turned negative at current prices.

Thesis pillars

  • Perfect Earnings Beat StreakStable
  • Breakout Technical MomentumImproving
  • Concentration Risk Supplier DependencyDeteriorating
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Westinghouse Air Brake Technolo (WAB) Stock Analysis

HoldModerate Confidence

Industrials · Railroads

Hold if already holding. Not a fresh buy at $302.50, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single-sourced component suppliers; Analyst target reached - limited upside remaining.

Wabtec manufactures locomotives, rail equipment, digital intelligence systems, and components for global freight and passenger transit markets, with 31,000 employees and operations in over 50 countries. The Freight Segment generates approximately 72% of net sales (roughly 58%... Read more

$302.50-6.7% A.UpsideScore 5.8/10#2 of 9 Railroads
QualityF-score8 / 9FCF yield2.20%
IncomeYield0.42%(5y avg 0.52%)Payout15.07%sustainable
Entry $265.71(50-day MA)Stop $249.15Target $296.90(resistance)A.R:R -0.5:1
Analyst target$324.25+7.2%12 analysts
$296.90our TP
$302.50price
$324.25mean
$280
$355

Hold if already holding. Not a fresh buy at $302.50, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single-sourced component suppliers; Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Downgraded from BUY WAIT — price $302.50 has reached target $296.90. No upside to wait for. Score 5.8/10, moderate confidence.

Passes 8/9 gates (positive momentum, clean insider activity, no SEC red flags, news boost earnings 0.60, news boost analyst 0.50, earnings proximity 87d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-26
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Oct 21, 202687d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Positive news sentiment (+0.73)
Positive momentum
Risks
Concentration risk — Supplier: single-sourced component suppliers
Analyst target reached - limited upside remaining
Near 52-week high (0.2% away)

Key Metrics

P/E (TTM)40.7
P/E (Fwd)24.5
Mkt Cap$51.1B
EV/EBITDA22.9
Profit Mgn10.5%
ROE11.3%
Rev Growth13.0%
Beta0.94
Dividend0.42%
Rating analysts17

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C1.29bearish
IV32%normal
Max Pain$360+19.0% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicinternational (outside U.S.) revenue
    10-K Item 1A: 'approximately half of our consolidated net sales were to customers outside of the United States'
  • HIGHSuppliersingle-sourced component suppliers
    10-K Item 1A: 'we rely upon third-party suppliers, including certain single-sourced suppliers, for various components for our products'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.0
Support Resistance
0.1
52w Position
10.0
GatesA.R:R -0.5=NEGATIVEMomentum 7.8>=5.5Insider activity: OKNo SEC red flagsNEWS BOOST EARNINGS 0.60NEWS BOOST ANALYST 0.50EARNINGS PROXIMITY 87d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
83 · Overbought
20D MA 50D MA 200D MAGOLDEN CROSSSupport $253.52Resistance $302.96

Price Targets

$249
$266
$297
A.Upside-6.7%
A.R:R-0.5:1

Position Sizing

ConvictionMedium conviction
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-6.7% upside)
! NEWS_MOD=+2: HOLD_IF_HOLDING → STRONG_BUY_WAIT
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-10-21 (87d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is WAB stock a buy right now?

Hold if already holding. Not a fresh buy at $302.50, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single-sourced component suppliers; Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Downgraded from BUY WAIT — price $302.50 has reached target $296.90. No upside to wait for. Target $296.90 (-1.9%), stop $249.15 (−21.4%), A.R:R -0.5:1. Score 5.8/10, moderate confidence.

What is the WAB stock price target?

Take-profit target: $296.90 (-6.7% upside). Target $296.90 (-1.9%), stop $249.15 (−21.4%), A.R:R -0.5:1. Stop-loss: $249.15.

What are the risks of investing in WAB?

Concentration risk — Supplier: single-sourced component suppliers; Analyst target reached - limited upside remaining; Near 52-week high (0.2% away).

Is WAB overvalued or undervalued?

Westinghouse Air Brake Technolo trades at a P/E of 40.7 (forward 24.5). TrendMatrix value score: 4.1/10. Verdict: Hold.

What do analysts say about WAB?

17 analysts cover WAB with a consensus score of 4.0/5. Average price target: $324.

What does Westinghouse Air Brake Technolo do?Wabtec manufactures locomotives, rail equipment, digital intelligence systems, and components for global freight and...

Wabtec manufactures locomotives, rail equipment, digital intelligence systems, and components for global freight and passenger transit markets, with 31,000 employees and operations in over 50 countries. The Freight Segment generates approximately 72% of net sales (roughly 58% from aftermarket), while the Transit Segment contributes 28% (roughly 56% aftermarket); combined aftermarket revenue represents approximately 60% of total net sales. An installed base of nearly 24,600 locomotives drives recurring replacement-part demand.

Related stocks: CSX (CSX Corporation) · UNP (Union Pacific Corporation) · CP (Canadian Pacific Kansas City Li) · CNI (Canadian National Railway Compa) · NSC (Norfolk Southern Corporation)
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