Core Viewpoint - Investors in the Transportation - Equipment and Leasing sector should consider Air Lease (AL) and Westinghouse Air Brake Technologies (WAB) for potential value opportunities [1] Group 1: Zacks Rank and Value Assessment - Both Air Lease and Westinghouse Air Brake Technologies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] - The Zacks Rank system emphasizes companies with improving earnings outlooks, which is a positive sign for investors [3] Group 2: Valuation Metrics - Air Lease has a forward P/E ratio of 10.25, while Westinghouse Air Brake Technologies has a forward P/E of 23.37, suggesting that AL may be undervalued compared to WAB [5] - The PEG ratio for Air Lease is 0.59, indicating a favorable valuation relative to its expected earnings growth, whereas WAB has a PEG ratio of 1.51 [5] - Air Lease's P/B ratio is 0.82, compared to WAB's P/B of 3.35, further supporting the argument that AL is a more attractive value option [6] Group 3: Overall Value Grades - Based on various valuation metrics, Air Lease holds a Value grade of A, while Westinghouse Air Brake Technologies has a Value grade of D, indicating that AL is the superior value option at this time [6]

Core Viewpoint - Air Lease (AL) is currently viewed as a better value opportunity compared to Westinghouse Air Brake Technologies (WAB) based on various valuation metrics [1]. Valuation Metrics - Both AL and WAB have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - AL has a forward P/E ratio of 10.38, significantly lower than WAB's forward P/E of 23.30 [5]. - The PEG ratio for AL is 0.60, while WAB's PEG ratio is 1.50, suggesting that AL is expected to grow earnings at a more favorable rate relative to its price [5]. - AL's P/B ratio is 0.83, compared to WAB's P/B of 3.34, indicating that AL is trading at a lower valuation relative to its book value [6]. - Based on these metrics, AL holds a Value grade of A, while WAB has a Value grade of D, reinforcing the conclusion that AL is the superior value option [6].

Core Viewpoint - United Parcel Service (UPS) and Westinghouse Air Brake Technologies Corporation (WAB) have both announced dividend increases this year, demonstrating a shareholder-friendly approach despite economic uncertainties [1][3]. Dividend Performance - WAB's board approved a 25% dividend increase, raising its quarterly cash dividend to $0.25 per share ($1.00 annualized) from $0.20 (80 cents annualized) [3]. - UPS raised its quarterly cash dividend to $1.64 per share ($6.56 annualized) from $1.63 ($6.52 annualized) [3]. Dividend Sustainability - Concerns about the sustainability of UPS's dividends arise due to its elevated dividend payout ratio, which indicates potential challenges in maintaining long-term dividend payments [4][6]. - UPS's free cash flow has declined from a high of $9 billion in 2022, with projections of $5.7 billion in 2025 against expected dividend payments of approximately $5.5 billion [5][6]. - In contrast, WAB's lower dividend payout ratio suggests no significant concerns regarding its ability to sustain dividend payments [6]. Price Performance - WAB has achieved a 5.1% year-to-date gain, while UPS has seen a double-digit decline in stock performance in 2025 [8]. - UPS's poor performance is attributed to revenue weakness due to geopolitical uncertainty and high inflation affecting consumer sentiment [11]. Market Outlook - WAB's strength is linked to its focus on new technologies and cost-cutting initiatives, with the global rail supply market expected to grow at an annual average of around 3% until 2027-29 [12]. - The Zacks Consensus Estimate for WAB indicates a year-over-year sales increase of 4.6% and 4.9% for 2025 and 2026, respectively, while UPS's estimates show a 4.1% decrease for 2025 [13][14]. Valuation Comparison - WAB is trading at a forward sales multiple of 3.08, above its five-year median of 2X, while UPS has a forward sales multiple of 0.92, below its five-year median of 1.54 [15]. - WAB's higher valuation suggests investors are paying a premium for its performance, while UPS's lower valuation reflects concerns about its dividend sustainability [16]. Investment Recommendation - Given WAB's better price performance, improving earnings estimates, and lower dividend payout ratio, it appears to be a more favorable investment compared to UPS [17].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Westinghouse Air Brake Technologies (WAB) currently holding a Momentum Style Score of A [2][3] Group 2: Performance Metrics of Westinghouse Air Brake Technologies - WAB has shown a 6.79% increase in shares over the past week, matching the performance of the Zacks Transportation - Equipment and Leasing industry [5] - Over the last quarter, WAB shares have risen by 12.47%, and by 20.41% over the past year, significantly outperforming the S&P 500, which has moved -2.63% and 13.25% respectively [6] - The average 20-day trading volume for WAB is 926,284 shares, indicating a bullish sign with rising stock prices [7] Group 3: Earnings Outlook and Revisions - In the past two months, four earnings estimates for WAB have increased, while none have decreased, raising the consensus estimate from $8.55 to $8.72 [9] - For the next fiscal year, three estimates have moved upwards, with one downward revision noted [9] Group 4: Conclusion on Investment Potential - Given the strong performance metrics and positive earnings outlook, WAB is rated as a 2 (Buy) stock with a Momentum Score of A, making it a promising near-term investment option [11]

Core Insights - The article compares Air Lease (AL) and Westinghouse Air Brake Technologies (WAB) to determine which stock offers better value for investors [1] Valuation Metrics - AL has a forward P/E ratio of 9.77, while WAB has a forward P/E of 22.19 [5] - AL's PEG ratio is 0.56, indicating better value relative to its expected earnings growth compared to WAB's PEG ratio of 1.43 [5] - AL's P/B ratio is 0.76, significantly lower than WAB's P/B of 3.17, suggesting AL is undervalued compared to its book value [6] Earnings Outlook - AL is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - AL holds a Zacks Rank of 2 (Buy), while WAB has a Zacks Rank of 3 (Hold), indicating a stronger earnings estimate revision trend for AL [3]

Company Performance - LATAM (LTM) has returned 16% year-to-date, outperforming the average return of -11.4% for Transportation companies [4] - The Zacks Consensus Estimate for LATAM's full-year earnings has increased by 14% over the past quarter, indicating improved analyst sentiment [4] - LATAM currently holds a Zacks Rank of 1 (Strong Buy), suggesting it is poised to outperform the broader market in the next one to three months [3] Industry Comparison - LATAM is part of the Transportation - Airline industry, which has seen an average loss of 21.9% year-to-date, further highlighting LATAM's strong performance [6] - In contrast, Westinghouse Air Brake Technologies (WAB), another outperforming stock in the Transportation sector, has only increased by 1% year-to-date [5] - The Transportation sector as a whole is ranked 16 in the Zacks Sector Rank, with LATAM being one of 125 individual stocks in this sector [2]

Core Insights - Westinghouse Air Brake Technologies Corporation (WAB) reported better-than-expected first-quarter adjusted EPS results and raised its FY25 adjusted EPS guidance [1][2] Financial Performance - The company reported quarterly earnings of $2.28 per share, surpassing the analyst consensus estimate of $2.03 per share [1] - Quarterly sales reached $2.61 billion, aligning with analyst expectations [1] Guidance Update - Westinghouse Air Brake raised its FY2025 adjusted EPS guidance from a range of $8.35-$8.75 to $8.35-$8.95 [2] Market Reaction - Following the earnings announcement, Westinghouse Air Brake shares increased by 1.8%, trading at $185.32 [2] Analyst Ratings and Price Targets - Susquehanna analyst Bascome Majors maintained a Positive rating but lowered the price target from $218 to $210 [7] - JP Morgan analyst Tami Zakaria maintained a Neutral rating and raised the price target from $175 to $194 [7] - Goldman Sachs analyst Jerry Revich also maintained a Neutral rating and increased the price target from $175 to $201 [7]

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Westinghouse Air Brake Technologies (WAB) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] - The company specializes in manufacturing parts for locomotives, subways, and buses [3] Group 2: Earnings Growth - Wabtec's historical EPS growth rate is 16.3%, with projected EPS growth of 9.3% this year, surpassing the industry average of 8.5% [5] Group 3: Cash Flow Growth - Wabtec's year-over-year cash flow growth is 15.6%, significantly higher than the industry average of 7.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.9%, compared to the industry average of 6.5% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Wabtec have increased, with the Zacks Consensus Estimate rising by 3.3% over the past month [9] Group 5: Investment Potential - Wabtec has earned a Growth Score of B and a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [11]

Core Insights - Wabtec (WAB) reported Q1 2025 earnings per share of $2.28, exceeding the Zacks Consensus Estimate of $2.01, marking a 20.6% year-over-year improvement due to increased sales and operating margin expansion [1] - Revenues reached $2.61 billion, slightly above the Zacks Consensus Estimate of $2.6 billion, reflecting a 4.5% year-over-year growth driven by the Freight and Transit segments [1] Financial Performance - WAB raised the mid-point of its 2025 EPS guidance by 10 cents, now expecting adjusted EPS in the range of $8.35-$8.95, compared to the previous range of $8.35-$8.75, with the new mid-point of $8.65 exceeding the prior mid-point of $8.55 [2][3] - The Freight unit's net sales were $1.9 billion, a 4.2% increase year over year, driven by a 16.9% rise in services, with an adjusted operating margin improvement to 25.7% [4] - The Transit segment saw net sales grow 5.3% year over year to $709 million, supported by strong aftermarket and original equipment sales, with an adjusted operating margin increase to 14.6% from 12.7% [5] Operating Metrics - Total operating expenses rose by $23 million year over year to $426 million, with the operating ratio deteriorating slightly to 16.3 from 16.2 [6] - Cash, cash equivalents, and restricted cash at the end of Q1 were $698 million, down from $715 million at the end of 2024 [6] - Long-term debt increased to $3.5 billion from $3.48 billion at the end of 2024, with $141 million returned to shareholders through dividends and stock buybacks [7] Guidance and Market Position - Wabtec expects 2025 revenues in the range of $10.725-$11.025 billion, with the Zacks Consensus Estimate at $10.84 billion, below the mid-point of the guided range [8] - Management anticipates operating cash flow conversion to exceed 90% for 2025 [8] - Wabtec currently holds a Zacks Rank 2 (Buy) [11]

Wabtec Financial Results & Company Highlights FIRST QUARTER 2025 1 Forward Looking Statements & Non-GAAP Financial Information This communication contains "forward-looking" statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including statements regarding Wabtec's plans, objectives, expectations and i ...