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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at heavy transportation equipment stocks, starting with Wabtec (NYSE:WAB).
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 12 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.4%.
In light of this news, share prices of the companies have held steady as they are up 2.5% on average since the latest earnings results.
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.
Wabtec reported revenues of $2.89 billion, up 8.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ organic revenue estimates.
“The Wabtec team delivered a very strong quarter, evidenced by continued growth in our backlog, sales, margin, and earnings,” said Rafael Santana, Wabtec’s President and CEO.
Interestingly, the stock is up 5.3% since reporting and currently trades at $208.51.
Is now the time to buy Wabtec? Access our full analysis of the earnings results here, it’s free for active Edge members.
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Cummins reported revenues of $8.32 billion, down 1.6% year on year, outperforming analysts’ expectations by 5%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $497.
Is now the time to buy Cummins? Access our full analysis of the earnings results here, it’s free for active Edge members.
With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Wabash reported revenues of $381.6 million, down 17.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
Wabash delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 6.1% since the results and currently trades at $8.82.
Read our full analysis of Wabash’s results here.
Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Federal Signal reported revenues of $555 million, up 17% year on year. This number topped analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also put up full-year EPS guidance beating analysts’ expectations and an impressive beat of analysts’ revenue estimates.
The stock is down 12.8% since reporting and currently trades at $113.10.
Read our full, actionable report on Federal Signal here, it’s free for active Edge members.
Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Allison Transmission reported revenues of $693 million, down 15.9% year on year. This result came in 8.5% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded a miss of analysts’ Service and Support revenue estimates and a miss of analysts’ International On-Highway revenue estimates.
The stock is up 9.5% since reporting and currently trades at $89.33.
Read our full, actionable report on Allison Transmission here, it’s free for active Edge members.
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
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