If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Westinghouse Air Brake Technologies (WAB) . This company, which is in the Zacks Transportation - Equipment and Leasing industry, shows potential for another earnings beat.This maker of parts for locomotives, subways and buses has an established record of topping earnings estimates, especially when looking at the previous two r ...

Core Viewpoint - Westinghouse Air Brake Technologies (WAB) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The correlation between earnings estimate revisions and stock price movements makes the Zacks rating system valuable for investors, as it provides a clearer picture than subjective Wall Street analyst ratings [3][4]. Business Outlook - Rising earnings estimates and the Zacks rating upgrade for WAB indicate an improvement in the company's underlying business, suggesting that investors should respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, WAB is expected to earn $8.89 per share, with a 1.9% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of WAB to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

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]