In the ever-evolving world of stock trading, it’s crucial to keep an eye on individual stocks that have the potential to outshine the broader market.
One such stock, Westinghouse Air Brake Technologies Corporation (NYSE: WAB), has been making waves with its impressive performance over the last three years. With a 60% surge in share price during this period, it has significantly outpaced the market’s average return of approximately 15%, without even factoring in dividends.
However, recent weeks have seen a slight dip, with the stock slipping by 3.1%. This prompts us to delve deeper into the company’s long-term story and determine whether fundamentals have been the driving force behind its positive three-year return.
Comparing changes in profits per share (EPS) with share price fluctuations is an effective way to determine how investor sentiment towards a firm has changed over time.
Westinghouse Air Brake Technologies achieved a remarkable 19% annual growth in EPS over three years, propelling its share price upward. Interestingly, this EPS growth aligns closely with the average annual increase in the share price, which stands at 17%. This suggests that the market’s perception of the company hasn’t undergone significant changes; instead, the share price has closely mirrored EPS growth.
Considering Dividends Westinghouse Air Brake Technologies
Beyond share price returns, it’s vital to consider Total Shareholder Return (TSR), which accounts for dividends (assuming reinvestment) and the benefits of any discounted capital raising or spin-off. TSR offers a more comprehensive picture of a stock’s overall return. Westinghouse Air Brake Technologies’ TSR over the past three years was an impressive 63%, surpassing the aforementioned share price return. This achievement is largely attributed to the company’s dividend payments.
Looking from a Different Perspective
Data reveals that Westinghouse Air Brake Technologies shareholders have enjoyed a 20% total shareholder return over one year, inclusive of dividends. This is a sign of positivity in recent sentiment surrounding the company. With the share price momentum remaining robust, it could be worthwhile to take a closer look at this stock. However, it’s essential to consider additional information to gain deeper insights.
While these insights provide a valuable perspective on Westinghouse Air Brake Technologies’ performance, it’s essential to acknowledge the associated risks and opportunities. Notably, there has been significant insider selling in the past three months, which may warrant further investigation.
In conclusion, Westinghouse Air Brake Technologies has exhibited impressive performance, both in terms of share price and dividends. Its consistent growth in EPS has contributed to its strong market standing. While the stock faces certain risks, it continues to draw positive sentiment from investors. To make well-informed investment decisions, it’s advisable to explore a broader range of factors and stay updated on the latest developments in the company.
Analyzing Westinghouse Air Brake Technologies Corp (WAB) in the Railroads Industry
Now, let’s shift our focus to Westinghouse Air Brake Technologies Corp (WAB) within the Railroads industry. This company takes the lead in its sector with an impressive overall score of 77. Amid the ups and downs of the stock market, WAB has shown resilience, registering a 19.22% increase in its stock value year-to-date, closing at $105 recently.
The overall score is derived from a combination of short and long-term indicators, and WAB’s score of 77 signifies that it outperforms 77% of the overall market. In the Railroads industry, which boasts an average overall score of 45, WAB stands as a robust performer. On average, stocks in this industry score higher than 45% of the broader stock market.
In recent trading, WAB has maintained a relatively neutral stance. With a slight decline of -1.71% this week following a previous drop, the stock is closely watched by analysts. An average analyst ranking of Buy, coupled with an average price target of $123.714, suggests optimism surrounding Westinghouse Air Brake Technologies Corp stock.
In the ever-changing landscape of stock trading, companies like WAB emerge as industry leaders, defying market trends and delivering consistent performance. As the Railroads industry continues to evolve, keeping an eye on top-performing stocks like WAB can provide valuable insights for investors seeking opportunities in a dynamic market.
In the world of stocks and investments, staying informed and conducting thorough research are key. Westinghouse Air Brake Technologies Corporation exemplifies the potential for individual stocks to outshine market averages, and its performance in both the railroads sector and the broader stock market highlights the importance of keeping a diversified portfolio while remaining vigilant about market trends and individual stock movements.
