5-Star Stocks Poised to Pop: Wabtec
By
Brian D. Pacampara
June 30, 2009
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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railroad equipment supplier Westinghouse Air Brake Technologies (NYSE: WAB) -- aka Wabtec -- has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Wabtec's business and see what CAPS investors are saying about the stock right now.
Wabtec facts
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Headquarters (founded)
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Wilmerding, Pa. (1869)
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Market Cap
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$1.58 billion
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Industry
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Railroads
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Trailing-12-Month Revenue
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$1.57 billion
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Management
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President/CEO Albert Neupaver (since 2006)
CFO Alvaro Garcia-Tunon (since 2003)
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Return on Equity (average, last three years)
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20.3%
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Competitors
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Trinity Industries (NYSE: TRN)
FreightCar America
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CAPS Members Bullish on WAB Also Bullish on
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Johnson & Johnson (NYSE: JNJ)
Chesapeake Energy (NYSE: CHK)
Apple (Nasdaq: AAPL)
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CAPS Members Bearish on WAB Also Bearish on
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Wells Fargo (NYSE: WFC)
DryShips (Nasdaq: DRYS)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.
Over on CAPS, some 98% of the 434 members who have rated Wabtec believe the stock will outperform the S&P 500 going forward. These bulls include naroowal99 and DepthMigration.
Three weeks ago, naroowal99 updated our community on a few positive developments:
One of the big things for Wabtec is that they are the leaders in the PTC (positive train control) technology. Congress has mandated that this technology be in the system by 2015 installed. Wabtec leads in the brake supplies and hence in the information for the brake distance. This will be $60 soon.
In a pitch from last month, DepthMigration hops aboard that bullish train of thought:
Absolutely one of my top picks. [Wabtec] is situated to take advantage of both the existing market for the rail industry by providing superior replacement/repair product, and of the future markets for more efficient rail and subway components. This is a financially conservative company, fair amount of cash on hand, and a much higher than average ROE.
What do you think about Wabtec, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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