WAB Should I Buy
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Westinghouse Air Brake Technologies Corp (WAB) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available. The company demonstrates strong financial performance, positive analyst sentiment, and growth potential through acquisitions and market leadership. Despite minor overbought technical indicators, the long-term growth outlook and strong fundamentals make it a solid investment choice.
The stock is in a bullish trend with moving averages aligned positively (SMA_5 > SMA_20 > SMA_200). The MACD histogram is above 0, indicating positive momentum, although it is contracting. RSI_6 at 83.874 suggests the stock is overbought, but this is not a major concern for long-term investors. Key support and resistance levels are S1: 233.03, Pivot: 245.639, R1: 258.249, and R2: 266.04, with the current price at $254.55 near R1.
Hedge funds are significantly increasing their positions, with a 170.31% rise in buying over the last quarter.
Analysts have raised price targets, with Citi, JPMorgan, KeyBanc, and others highlighting strong growth potential, M&A benefits, and international market momentum.
Recent acquisitions like Dellner Couplers enhance WAB's technology portfolio and competitiveness.
Record backlog of $27 billion and a 24% dividend increase signal strong future growth and shareholder returns.
RSI indicates the stock is overbought, which could lead to short-term price corrections.
Net income and EPS showed slight declines YoY in Q4 2025, despite revenue growth.
In Q4 2025, revenue increased by 14.79% YoY to $2.965 billion, and gross margin improved by 4.63% YoY to 29.85%. However, net income dropped by 4.72% YoY to $202 million, and EPS declined by 4.07% YoY to $1.18. The company also announced a 24% dividend increase and a $1.2 billion stock buyback authorization, reflecting strong shareholder returns.
Analyst sentiment is overwhelmingly positive, with multiple firms raising price targets and maintaining Buy or Positive ratings. KeyBanc highlighted double-digit EPS growth potential through the decade, and Susquehanna emphasized backlog strength and M&A integration benefits. Price targets range from $258 to $308, with the current price at $254.55 indicating upside potential.
