Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Wabtec Remains A Frustrating Mix Of Quality, Opportunity, And Expectations

Locomotive and train car components manufacturer Wabtec (NYSE:WAB) has missed revenue expectations for four straight quarters, but it hasn't done any harm to the sentiment on the stock. These shares are up more than 60% for the past year and over 100% over the past two years, as investors continue to play their enthusiasm for a rail infrastructure build-out in the U.S. and the potential for Wabtec to replicate its "components on almost every car" market share in North America, in Europe and Asia.

Wabtec also remains a frustrating company to evaluate from a valuation perspective. If Wabtec could hold 20% overseas market share by 2023 in those areas, where it has roughly 50% share in North America,...

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