Westinghouse Air Brake Technologies Corporation (NYSE:WAB), known to many as Wabtec, has been hurtling down the track at full throttle: its stock has risen from $49.38 on October 4, 2011, to recently trade above $87.00. Yet, just as Wabtec's brakes slow trains, economic realities will likely ease back the throttle and apply the brakes to the Wabtec locomotive.
The graph below summarizes Wabtec's share price over the past two years:
(click to enlarge)
Wabtec has had a great 2012. In the first nine months, revenue grew $348 million (24.3%) over the comparable 2011 period. Estimated sales for 2012 are $2.39 billion, up 21.7% from 2011's $1.97 billion.
At $87, the market is expecting future earnings and...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|