Wabtec Story

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WAB -- USA Stock  

USD 74.73  0.04  0.05%

While some millenniums are indifferent towards industrials space, it makes sense to go over Westinghouse Air Brake in terms of its current potentials. As we have suggested previously, Westinghouse Air is beginning its slip as investors shift to be more bearish due to the increased sector volatility. A lot of the movements of the company stock price movements has been a reflection of what is happening in the market overall. Strong forward indicators of the company may also suggest signals of long term gains for Westinghouse investors. Westinghouse Air Brake is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of May 2021.
Published over a week ago
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Will Westinghouse Air (NYSE:WAB) continue to slip in March?
Westinghouse Air Brake's average rating is Buy from 8 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Westinghouse Air market sentiment investors' perception of the future value of Westinghouse. Let us look at a few aspects of Westinghouse technical analysis. About 96.0% of the company outstanding shares are owned by institutional investors. Westinghouse Air Brake has Price to Book (P/B) ratio of 1.53. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 2.92. The firm last dividend was issued on the 11th of February 2021. Westinghouse Air had 2:1 split on the 12th of June 2013.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Wabtec Corp. In general, we focus on analyzing Wabtec Corp stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Wabtec Corp's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Wabtec Corp's intrinsic value. In addition to deriving basic predictive indicators for Wabtec Corp, we also check how macroeconomic factors affect Wabtec Corp price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Wabtec Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Wabtec Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Wabtec Corp. Your research has to be compared to or analyzed against Wabtec Corp's peers to derive any actionable benefits. When done correctly, Wabtec Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Wabtec Corp.

How does Wabtec Stands against Peers?

Analyzing Wabtec Corp competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Wabtec Corp across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Wabtec Corp Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Wabtec Corp, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Nalin Jain of 1667 shares of Wabtec Corp subject to Rule 16b-3

Legal trades by Wabtec Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Wabtec insider trading alert for exercise of phantom stock by Nalin Jain, President Equipment Group, on 2nd of March 2021. This event was filed by Westinghouse Air Brake Te with SEC on 2021-03-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Westinghouse Air Mean Deviation

Westinghouse Air Brake has current Mean Deviation of 1.41. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation 
 = 
SUM(RET DEV) 
 = 
1.41
SUM = Summation notation
RET DEV = Sum of return deviations of Westinghouse Air
N = Number of calculation points for selected time horizon
Let's now compare Westinghouse Air Mean Deviation to its closest peers:
WAB
GD
NE
OC
WAB1.41
GD1.11
NE39.27
OC1.49

Analysis of Westinghouse Air Brake

Mean deviation is down to 1.41. It may suggest a possible volatility slip. As of the 18th of February 2021, Westinghouse Air maintains the Market Risk Adjusted Performance of 0.1441, downside deviation of 1.34, and Mean Deviation of 1.41. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Westinghouse Air Brake, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Westinghouse Air Brake, which can be compared to its rivals. Please check out Westinghouse Air Brake value at risk, as well as the relationship between the semi variance and kurtosis to decide if Westinghouse Air Brake is priced fairly, providing market reflects its latest price of 79.35 per share. Given that Westinghouse Air Brake has jensen alpha of 0.0454, we strongly advise you to confirm Westinghouse Air Brake's prevalent market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas some other entities within the railroads industry are still a little expensive, even after the recent corrections, Westinghouse Air may offer a potential longer-term growth to investors. To sum up, as of the 18th of February 2021, our primary 30 days advice on the company is Strong Buy. We believe Westinghouse Air is currently fairly valued with low odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Wabtec Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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