How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Westinghouse Air Brake Technologies (WAB) ten years ago? It may not have been easy to hold on to WAB for all that time, but if you did, how much would your investment be worth today?
Westinghouse Air Brake Technologies' Business In-Depth
With that in mind, let's take a look at Westinghouse Air Brake Technologies' main business drivers.
Westinghouse Air Brake Technologies Corporation provides value-added, technology-based locomotives, equipment, systems and services for the freight rail and passenger transit industries, as well as in the mining, marine and industrial markets, across the globe. WAB's products are intended to enhance safety, improve productivity and reduce maintenance costs for customers. The company's products can be seen on most locomotives, freight cars, passenger transit cars and buses around the globe.
The company, which has operations in over 50 countries, functions under the name of Wabtec Corporation and is currently based in Wilmerding, PA. Wabtec, which went public on the NYSE in 1995, operates in more than 50 countries.
Following the merger with GE Transportation in February 2019, Wabtec was included in the coveted S&P 500 index. Net sales in 2024 increased 7.3% year over year to $10.39 billion. Wabtec primarily serves the global freight rail and passenger transit industries and operates under two business segments, namely Transit and Freight.
The Freight unit (contributing 72% of 2024 revenues) manufactures new and modernized locomotives. The segment also manufactures aftermarket parts and services to existing locomotives apart from providing components for new and existing freight cars. It also focuses on building new commuter locomotives and supplying rail control and infrastructure products. In 2024, 59% of segmental net sales came from the United States. Roughly, 61% of the segmental net sales were in the aftermarket with the balance being generated in the original equipment market. Segmental sales increased 7.9% year over year in 2024 due to higher demand for services and components, and benefited from strategic acquisitions like L&M Radiator.
The Transit segment (28%) primarily manufactures and services components for new and existing passenger transit vehicles like regional and high-speed trains and subway cars. In 2024, 18% of segmental sales came from the United States. Additionally, roughly 55% of the segment’s sales were in the aftermarket. The balance came from the original equipment market. Segmental sales increased 6% year over year in 2024. WAB's financial year coincides with the calender year.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Westinghouse Air Brake Technologies ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2016 would be worth $3,863.72, or a gain of 286.37%, as of February 26, 2026, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 255.90% and the price of gold went up 303.87% over the same time frame.
Looking ahead, analysts are expecting more upside for WAB.
Shares of Wabtec have risen 43.6% over the past year, outperforming its industry's surge. Since WAB's fortunes are tied to the broader economy, improvement of the same led by cooling inflation has led to this gain. Focus on new technologies to improve safety and reliability, together with its restructuring actions and cost cutting actions are the main drivers of its strength lately. Its strong free cash flow generating ability helps in dividend payments and share buybacks. On the flip side, lingering supply chain issues persist. Economic and political uncertainty is an overhang on WAB's financials. WAB shares are more volatile than the market and we therefore advise caution. Considering all these factors, investors are advised to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested.
Shares have gained 14.82% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2026 compared to none lower. The consensus estimate has moved up as well.
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Wabtec (WAB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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